Fall in prices of grain in Ukraine almost stops, says expert

10:57

A fall in the prices of grain, which was seen in Ukraine during the current marketing year (MY, July 2008- June 2009) and especially worsened in October and November, slightly stopped last week, the agricultural analysts have said.

"A fall in the prices almost stopped. Trade on the market is very sluggish," an analyst of the UkrAgroConsult Center, Elizaveta Malyshko, told Interfax-Ukraine on Monday.

Experts link the price stability with low activity of the Ukrainian market, and they does rule out that the present situation may retain by the middle of January 2009.

"The domestic market is almost in stagnation, and that's why the fall stopped," the head of the analytical service at APK-Inform, Rodion Rybchynsky, said.

Analysts said that domestic processors, who work using last year stocks, exporters show the stagnant interest to purchase o grain due to the absence of demand on the international market. In addition, farmers are not in a hurry to sell their grain, expecting more favorable price situation.

According to the ProAgro Company, from December 1 to December 5, the average price of deals on the third class wheat was UAH 950 per tonne (on the EXW conditions), the fourth class wheat – UAH 830 per tonne, forage wheat – UAH 490 per tonne, forage barley – UAH 600 per tonne and corn – UAH 450 per tonne.

Analysts said that by the middle of January 2009, one should not expect any considerable changes on the domestic grain market.

"It's very difficult to predict the further development of the situation. It's likely that the prices won’t fall... and there no grounds for their rise," Malyshko said.

Experts said that the middle of January is a traditional period of stirring up of trade on the Ukrainian grain market, as during this period, domestic processors, who sold their stocks during the New Year holidays, come to the market. In addition, export trade stirs up too.