AgroMarket UUB from the Ukrainian Universal Exchange has updated the results for the period from June 3 to 10, as reported by agronews.ua.
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The Ukrainian Universal Exchange continues to actively work in the agricultural market and offers a new level of service: an organized grain and oilseed market – EXCHANGE TRADING OF AGRICULTURAL PRODUCTS BY UUB. More detailed information can be found at the link.
Domestic Market (Ukraine)
The corn market currently shows mixed dynamics, but mainly within the established price range. The main price support factors are low supply from farmers who postpone sales in hopes of better prices and active domestic demand.
However, the export market is putting pressure: European buyers expect the arrival of cheap Brazilian corn from the second harvest by the end of June – early July, so the interest in Ukrainian old harvest products is limited due to their relatively high cost. As of June 10, the average bid price was 9,772.86 UAH/ton (EXW with VAT), which is 1.21% lower than the previous week.
“There was a diverse price dynamics on the wheat market. On one hand, price support was provided by active demand from processing plants and limited supply. On the other hand, price pressure persisted due to weak trader interest, negative trends in the export market, and expectations of a new harvest. As of June 10, the average bid price (EXW) for 2nd class wheat was 9,745.91 UAH/ton (with VAT), 3rd class – 9,484.37 UAH/ton (with VAT), and 4th class – 9,434.47 UAH/ton (with VAT). According to the weekly forecast, wheat prices will remain under pressure, but due to limited stocks, a sharp price drop is unlikely,” analysts at UUB note.
Foreign Market (Chicago)
On Tuesday, June 10, the improvement in the wheat crop condition rating in the US put pressure on futures, leading to their decline. While corn and soybeans ended the trading session with growth, supported by active demand and seasonal factors.
“According to the US Department of Agriculture report, as of Sunday, 54% of the winter wheat crop was rated as ‘good’ or ‘excellent,’ which is 2 points higher than the previous week. Spring wheat also showed improvement – up 3 points to 53%. Both indicators turned out to be higher than analysts’ expectations, putting pressure on prices. At the same time, the pace of winter wheat harvesting remains slow – only 4% of the area has been harvested, while 8% was expected, and the five-year average is 7%,” UUB analysts add.
Foreign Market (Euronext)
On Tuesday, June 10, the base prices for wheat on the Euronext exchange fell below the psychological mark of 200 euros, to a record contract minimum of 198.50 euros per ton. This movement was a result of improved harvest forecasts in the Northern Hemisphere, strengthening expectations of a large grain supply and stiff competition in the export market for the next season.
To review the market’s indicative price overview, go to the free Telegram chatbot for buying and selling agricultural products – AgroMarket UUB, then select “share number” and choose the “Analytics” section.