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As of September 7, Ukraine produced 26.29 mln tonnes of grains

grain ukraineAs of September 7, 2012, agrarians of Ukraine harvested grains and leguminous plants throughout the areas of 10.18 mln ha, or 68% of the forecast. The produced volumes totaled 26.29 mln tonnes of grains with the average yield of 25.8 c/ha, declared the Ministry of Agrarian Policy and Food of Ukraine.
On the same date of 2011 agrarians managed to harvest 35.15 mln tonnes of grains throughout 11.56 mln ha, with the average yield of 30.4 c/ha.
In particular, as of the reporting date of 2012 agrarians already harvested 129.7 thsd tonnes of buckwheat throughout the areas of 130 thsd ha (46%). The average yield totaled 10.0 c/ha.
Besides, as of the reporting date agrarians harvested maize for grain throughout the areas of 187.2 thsd ha. The production volumes totaled 636 thsd tonnes, the yield – 34 c/ha.
Agrarians harvested 124.9 thsd tonnes of millet throughout the areas of 110.3 thsd ha (54%), with the average yield of 11.3 c/ha.
As of the reporting date, Ukraine harvested 1.29 mln tonnes of sunflower seed throughout 968.0 thsd ha (20%) with the yield of 13.4 c/ha.
Ukraine also harvested soybeans throughout 170.9 thsd ha, and produced 253.1 thsd tonnes of the oilseed, the yield totaled 14.8 c/ha.
Besides, Ukraine realizes field works to prepare the soil for planting of winter crops. As of the reporting date, agrarians processed the areas of 8.72 mln ha (96% of the plan).
Agrarians planted winter rapeseed for the harvest-2013 throughout the areas of 809.8 thsd ha (86% of the forecast), other winter crops – 271.4 thsd ha (3%).

Exporting seed from Ukraine greatly expanded

     A significant expansion of export geography seed from Ukraine was made ​​possible by several factors, namely the accession of Ukraine to the two certification schemes profiled the Organization for Economic Cooperation and Development (OECD), the accreditation of laboratories Ukrderzhnasininspektsii in an international organization, by definition, sowing qualities of seeds – ISTA. This gave the opportunity to give Ukrainian producers to obtain international certificates and export seeds from Ukraine in 70 countries .

        It should be noted that since the beginning of 2012 has already exported more than 4.5 tons of seed to the EU . Derzhsilgospinspektsiey Ukraine developed proposals to the Law of Ukraine “On the seeds for planting,” which will help to harmonize the legislative field of seed requirements of the European Community.

      Recall for the 2011 export of goods from Ukraine to the EU amounted to $ 17,969,900,000, an increase compared with 2010 by 37.7%, imports – $ 25,750,600,000, respectively, and 34.8%.The negative balance was $ 7.7807 billion (minus $ 6,049,300,000 in 2010). Export import coverage ratio was 0.70 (for 2010 – 0.68).
        In the total exports of goods from Ukraine the share of EU countries amounted to 26.3% , imports – 31.2% (in 2010, respectively 25.4% and 31.4%). The main partners in both exports and imports of goods are Germany (respectively, $ 1,765,100,000 and $ 6,865,700,000), Poland ($ 2,794,100,000 and $ 3,183,300,000), Italy ($ 3,039,500,000 and $ 2,005,700,000 ) and Hungary ($ 1,340,700,000 and $ 1,326,100,000).

Ukraine’s eastern region is the largest processor of grains and oilseeds in the country

The eastern region of Ukraine is the largest player in the country in terms of grain processing. Thus, the region takes the first position in terms of flour production, which mainly consists of production of wheat and wheat-rye flour – 95-96% of the general production of these products.
The following three companies produce almost half of the flour volumes in the region: SE “Novopokrovskij kombinat hleboproduktov”, “Urozhay” LLC and OJSC “Luganskmlyn”. In 2012, the combined share of these companies in the general production volume totaled 49%, in 2011 – 41%.
It is also necessary to note that in 2012, maize showed the lowest prime cost of production among the main grain crops in the eastern region (1077 UAH/t), due to the relatively high grain yield (nearly 4.27 t/ha). The largest prime cost was typical for barley – 1901 UAH/t. The index was caused by extreme weather conditions of the last year in the vegetation period, resulting in higher costs to maintain the planted areas.
Besides, the eastern region produces 26% of the general volume of sunflower seed in Ukraine, and processes over 20% of the volumes. During 2008-2012. sunflower oil production in the region increased by 28%.

Black Sea wheat futures

Today the world is consuming more food than ever. Certain regions are specially equipped to produce the crop required to meet increasing demand. Latin America is that area for soybeans. For grains, it’s the Black Sea.
130 years ago, this region was known as the breadbasket of the world. Over time, war and Soviet agricultural policy largely hindered the robust agricultural production that is possible there.
Russia and Ukraine exported about 20 percent of the world’s wheat for the 2011-2012 marketing year (the number jumps to 24 percent when including Kazakhstan), making the region the number two exporter in the world after the United States. This is astonishing given that the region represented only 3 percent of global wheat exports in the 2003-2004 marketing year.
D0 B7 D0 B0 D0 B3 D1 80 D1 83 D0 B6 D0 B5 D0 BD D0 BD D0 BE D0 B5
But with the current and expected production growth, producers in the region and buyers of Black Sea Wheat, such as those in North Africa and the Middle East, have an increased need to manage their price risk given the fact that wheat price volatility has been increasing over last years.
Despite its position as a top exporter, the Black Sea was essentially the only wheat producing area in the world without its own futures contract. Different wheat prices benchmark existed but they poorly reflected wheat prices fluctuations in the Black sea region. That’s why the Black Sea wheat contract is better placed to converge with wheat produced in the region, partly thanks to the fact that the contract is deliverable at several ports along the Black Sea.
Producers and buyers of Black Sea wheat have mostly had to negotiate a price for deliverable wheat and trust that their counterparty will not back out of the deal in favor of a better one. Complicating this situation further is the international nature of most of the trades. With an exchange traded futures contract, both parties can safely transfer their risk with the added benefit of central clearing. However it remains price risk management tool rather than substitute to the physical market.
After the launch of the Black sea wheat contract on 6 Jun 2012 the first traded month was September 2012 contract. It expired on 31st August. All the positions in September 2012 contract were offset before the expiration and no delivery took place, showing contract’s ability to be used for risk management purposes. 

Ukrainian sorghum – season results

Sorghum used to be planted in order to share lots and for economic needs. But as of to date it is winning the trust of the Ukrainian agrarians. Considering the official data in 2012 the planted area exceeded the last year rate by 2.5 times. In the stated material we will talk about the features of the Ukrainian sorghum market and also the further prospects of its consumption in various industries.
Ukraine sorghum
What you plant is what you reap
Grain sorghum is considered the birthplace of the North-East Africa. It is where grows the largest number of its cultural forms. However, it is cultivating the new lands and Ukraine is not the exception. According to the State Statistics Committee, in 2012, they planted nearly 199 ha of grain sorghum against 76.6 thsd ha in the previous year. The agrarians have been highly interested in it for a long time. But the decisive factor which caused its planted areas increase, was the perish of winter crops. According to estimates, the area of sorghum winter crops replanting stated nearly 54 thsd ha. The choice in not accident, the crop has the high yield level (45 c/ha) and the profitability of the grain production is 65%.
Destine the optimistic forecast of the area specialists while the harvesting campaign was going it was obvious there would not be high crop in 2012. The Southern enterprises harvested just 20-25 c/ha, down 20% compared to the last year rate. The major reasons of the harvest decrease was the limited volume of the moisture in the soil and also the difficult weather conditions stated in the period of the grain growing.
However there was the impact of the low-quality seeds. The first-planting agrarians used the grain untreated with antidote. These agents provide the additional defense for the sorghum crops from the various diseases and the harvest is higher then.
The analysts forecast the increase of the sorghum production in 2012 by over 40 USD/t. The crop to reach 306.5 thsd tones, as opposed to 175.9 thsd tones in 2011. The major reason was the planted areas increase.
Planted areas, `000 ha
Harvested areas, `000 ha
Yield, c/
Production, `000 tonnes
* Forecast of АPК-Inform Agency
Without logic
We should note that the sorghum price is comparable with the maize price. The premium between crops was 15-15 USD/t in the favor of maize.
The start of the sorghum season faced the sharp increase impacted on the purchasing prices level. Thus in the period of September to October the grain prices used to face the growth. In September the maximum demand price was at the level of 1850 UAH/t EXW, and in October they reached 2070 UAH/t EXW. The favorite grain is white sorghum. Demand prices are 20-30 UAH/t higher of the red one.
However despite the favorable market conjuncture the offers number from the agrarians was limited. The reason was the harvesting campaign started with one month of late. If the temperature is high they stop developing, so the agrarians have faced this season.
And after the harvesting campaign finish most of the agricultural producers put the grain on the stores and started waiting for the demand prices increase. They used to total 2000-2100 UAH/t EXW. In Autumn 2011 most of the agricultural producers were ready to trade grain by minimum demand prices (1550-1650 UAH/t EXW). But this season there is the demand on the high prices but there are no supplies. In the end of October the exporters stopped purchasing sorghum unwilling to work on the agricultural producers rules.
Sorghum exports: to be continued
Sorghum is the universal crop nourishing for human and farm livestock. However despite the positive sides the major volumes produced in Ukraine are for exports. The major countries-importers traditionally are: Egypt, Turkey, Israel. Thus in 2011/12 MY the grain exports totaled 112623 tones as opposed to33460 tones in2010/11 MY. The sorghum market experts note in few years the stated tendency to be continued. The analysts forecast in 2012/13 MY sorghum exports to grow by 1.5 times as opposed to 2011/12 MY. The reason is the countries list increase importing sorghum from Ukraine. The confirmation is in September the major buyers of the Ukrainian sorghum were Poland, Lithuania and Iraq.
Domestic consumption: to be first means to be the best
Sorghum is the crop for exports mostly, but still there is the domestic consumption though it is insignificant. The prospective is for the sorghum use in the cattle-breeding because the stated grain has good feed parameters mostly equal to maize ones.
But on the technological side of view the sorghum processors face the problem of unfitness of the equipment for the sorghum use in the combine-feed production. The major problem is the crop is fine-grained so the processing becomes difficult. At the same time to correct the stated situation and input the additional funds only few cattle-breeders are ready.
Another one prospective industry is spirit. On its chemical and technological possibilities sorghum is equal to maize and wheat. The starch content in the sorghum totals 57-59%, meanwhile for wheat and maize – 57-60% and 53-54% respectively. Considering the above stated facts stated in the normative and technical documentation note in the spirits production the sorghum is able to compete with the major grain crops.
Despite the fact the annual processing of the sorghum in the spirits industry is nearly 2% the experts note in the recent years the stated rate to face increase considering the moisture provision in the south has become much more complicated in the South.
As for the further development on the sorghum market if there is the favorable market conjuncture there is the production increase. The crop potential is high.

Ukraine confirms wheat export ban

KIEV/ABU DHABI – Ukraine’s agriculture minister on Wednesday said the country would ban wheat exports from Nov. 15 after a weather-damaged harvest, a move that underpinned international prices.
Egypt, the leading global wheat importer, warned that Ukraine risked damaging its credibility on international grain markets. Ukraine later said existing contracts can be fulfilled.
“There will be a full ban from Nov. 15. There will be a government order about this. We are not playing games here. We do not have any other option,” Farm Minister Mykola Prysyazhnyuk told Reuters, confirming widespread speculation in markets in past weeks.
The European Union’s top farm official warned Ukraine to avoid any measures that would increase global grain prices and disturb traditional trade flows.
“I am deeply disappointed to see this announcement,” EU Agriculture Commissioner Dacian Ciolos said in a statement. “It will add unnecessary tension to international agricultural markets, and those that will suffer most will be the world’s poorest.”
Ukraine, one of the top 10 global wheat-exporting countries, saw its harvest slashed by a third this year due to poor weather, as the United States suffered its worst drought in more than half a century. Global prices of wheat, corn and soybeans raced up sharply over the summer period.
U.S. wheat rose on Wednesday after the confirmation on expectations that there would be more U.S. export business. Chicago December wheat rose 0.2 percent to $8.70-3/4 a bushel. It had been down 0.2 percent just before the announcement.
Prysyazhnyuk had said that Ukraine would consider imposing limits if the high level of exports threatened to push up the price of bread at home.
Last week the government said the high pace of wheat exports would exhaust stocks of Ukrainian wheat available for shipping abroad by Nov. 15-20, and it urged traders to be cautious in concluding new contracts.
Market players, who had feared the government would resort to unofficial restrictions, were relieved.
“A full ban with a clear date is probably the best option for traders,” said a trader for a large foreign grain house. “Everything is clear and we can claim force majeure.”
In 2010, the government, under a threat of a possible jump in local grain prices, raised artificial barriers for exports and halted the shipments in the first months of the crop season.

Ukrainian rapeseed market – new season and old problems

Rapeseed Ukraine
Despite the production annual decrease Ukrainian rapeseed has the highest export potential among the oilseeds. Traditionally, the certain volume of the crop is for export providing the high position on the European market.
This material states about the key moment of the past season of rapeseed (2011/12) and also about the major tendencies inherent the oilseeds market in the beginning of season-2012/13
Ukrainian rapeseed: export market saves the dominating position
First better to note the basic factor in the formation of the price situation on the rapeseed domestic market is the exports market, meaning the demand for rapeseed on the world market and its prices. Nevertheless despite rapeseed seeds are highly demanded in Europe, the Statistics data states in Ukraine since 2009 there have been rapeseed planted areas decrease. Meanwhile rapeseed planted areas decrease is fully compensated with their widening under the major oilseeds – sunflower and soybeans.
However in order to face the situation clearly since the beginning of 2012/13 it is necessary to remind the past season. Thus, in 2011/12 MY rapeseed planted areas totaled 1168.6 thsd ha, meanwhile the harvested area was at the level of 832.7 thsd ha. At the same time the oilseed general production totaled 1.4 mln tonnes owing the high yield level totaled 17.3 c/ha. Note the maximum yield level was in the Western parts of Ukraine and totaled 25.9 c/ha.
Rape seed pas season was unstable for the market participants in the price policy and the activity of the trade-purchasing work. The price situation on the domestic market depended on the world market tendencies due to the world market is the major sales market of the Ukrainian raw-materials. In 2011/12 MY Ukrainian rapeseed was supplied to 21 countries. Over 70% of the general exports was in the first have of season-2011/12 (July-December) in the period of more favorable market conjuncture. Meanwhile the major importer was Poland bought over of 370 thsd tonnes oil seeds.
The market participants stated 2011/12-season started with the high demand prices on FOB, DAP to be at the level of 630-650 USD/t. During September-January prices changed being depended on the world market situation and did not face the clear trend. However since the second half of January 2011 and to April 2012 FOB demand prices faced the stable increase being stopped shortly (February).
As for the domestic prices, the rapeseed cost in the beginning of season-2011/12 were announced at the level of 4850 UAH/t EXW. The stated price situation was inherent to the market all over July, But since August there have been the negative price tendency cause the export prices increase. Demand prices in September-October did not exceed 4400 UAH/t EXW.
Note despite the limited number of the raw-material supplies and also increase demand of the export-oriented companies for rapeseed, since March and till the end of the past season the demand prices were at the level of 4350-4400 UAH/t EXW. In the current situation the raw-material sellers used to prefer to hold sales awaiting for the favorable moment to resume them. The waiting attitude was caused by the fears for the rapeseed condition due to the anomaly heat in spring-summer period.
Start of the Ukrainian season of 2012/13: following the traditions
The rape seed general production of 2012/13 MY totaled 1.255 mln tonnes down compared to July forecasts. The major reason of the current situation is the harvested areas decrease due to poor condition of the plants caused by unfavorable weather conditions. Thus, in this season the harvested area totaled 607.7 thsd ha with the average yield of 21.2 c/ha.
Rapeseed harvesting campaign of 2012/13 started in the middle of June traditionally in the south oblast and in the Autonomous Republic of Crimea. The small parties of rapeseed started coming for sale by trucks norms. The quality was not high as it is usual for the beginning of harvesting, in particular the yield was at the level of 10-14 c/ha.
Meanwhile the harvesting campaign was moving the market participants noted the lack of the oilseed supplies. At the same time the high demand of the export-oriented companies for rape seed and as a circumstance the traders necessity to attract rather large-scale parties of seeds initiated the purchasing prices growth. Also note during the period of July-September there were fulfilled forward contracts concluded in spring-summer time when rapeseed prices were higher of the September-October rates. Thus average currency prices on FOB basis in the beginning of the season (July) were declared in wide range – 610-645 USD/t depending on the terms of fulfillment and concluding as well. Rather stable price situation with the bullish trend usual for the second half of August and the first half of September was on the rapeseed export market. In the stated period (August-first half of September) bid prices were at the range of 615-640 USD/t FOB. However in the end of September the bullish trend was replaced by prices decrease following the same changes on the rapeseed world market. Meanwhile bid prices were declared at the level of 635 USD/t FOB.
As for demand note in the first half of July bid prices were repeatedly corrected upward at the range of 4350-4500 UAH/t EXW, 4450-4650 UAH/t СРТ and to 4850 UAH/t СРТ. Meanwhile agricultural producers offered the limited volumes of rapeseed parties due to the conditions of the rising market and declared the prices at the level of 4700 UAH/t EXW, meanwhile bid prices were declared at the level of 5000 UAH/t EXW.
Note by the end of July all the regions started the harvesting campaign. Market operators declared the good quality of harvested seed. The average yield totaled 20-22 c/ha, in the certain oblasts was at the level of 25-30 c/ha, meanwhile the oil content was at the level of 44-45%.
Rapeseed world prices decrease and the oilseed demand slowing from the export-oriented companies caused the domestic prices decline in the end of July – beginning of August . Note since the stated period the oilseed demand prices used to be changed meanwhile the formation of the price range was influenced by the territorial closeness to the ports and the offered parties volumes.
Market participants declared supply prices in the northern and western oblasts at the level of 4350 UAH/t EXW, meanwhile bid prices were declared at the level of  4450-4550 UAH/t EXW.
Thus due to the bid/ supply prices imbalance during the first half of August there was slow activity of the trade-purchasing work. Despite the situation stabilizing in the second half of August the traders continued to declare minimal bid prices note the large number of supplies.
At the same time the certain traders purchased large-scale parties of the oilseed (to 1500 tonnes) meanwhile purchasing prices were declared at the level of  4400-4550 UAH/t EXW depending on the region, payment conditions and forms. The buyers noted the high quality of the purchasing parties.
September was characterized with the previous slow trade-purchasing activity. Most of the agrarians holding the large-scale raw-material parties and owning the storage capacities continued to take the waiting attitude waiting for further prices increase or preferred to hold sales. Bid prices in the central and southern oblast on CPT – basis were declared at the level of 4600-4680 UAH/t.
Forecasts of the Ukrainian rapeseed market development. What to expect from the next season?
Considering the practice of the previous few seasons and the high interest of the importers to the rapeseed it is possible to suggest in 2012/13 season export-oriented companies will be the major players on the market.
As for the further prospects of the rapeseed production in Ukraine it is impossible to forecast. Note the possible cancellation of donations of the European Union for biofuel production so the interest of the Eeurozone to the Ukrainian rapeseed will slowdown. At the same time it will cause the domestic processing prices increase of the oilseed. But it is possible only of there are the sales markets of the major rapeseed by-product – rapeseed meal/ cake and rapeseed oil. But it is possible to state: without availability of the favorable world market conjuncture of rapeseed and the by-product as well they should no expect the high interest of the Ukrainian agrarians to the rape seed production.

Ukraine: exports of peas broke the record during recent three seasons

Peas UkraineAccording to the operative statistics, in July-August of 2012 Ukraine exported nearly 54 thsd tonnes of peas (including groats). At the same time, in the same period of 2011 the export volumes totaled over 34 thsd tonnes of the legume and by-products, in 2010 – nearly 42 thsd tonnes.
It is noteworthy that the trend is observed on the background of reduction of the forecast of the exports from the level of 142 thsd tonnes in 2011/12 MY to 130 thsd tonnes in the current season.
According to estimations of analysts, the ending stocks of peas in 2012/13 MY may total a little more than 40 thsd tonnes. According to the market experts, these volumes may become a reserve for increasing of the export volumes in 2012/13 season.
In 2013, the planted areas under the crop can increase by nearly 35%.

Ukrainian flour exporters – aimed to go forward

Every year producers of wheat flour hope to get active and unimpeded experience of work on the market. However, annually the enterprises face various obstacles on the way to the prosperous work. It should be noted that during almost the entire first half of 2012/13 MY the situation on the export market of flour was relatively stable and measured, but in late 2012 the situation changed and presented the unpleasant surprise for flour millers. At the same time, since the second half of MY the current market trends changed again, indicating that Ukrainian exporters of wheat flour can “cross” through the existing problems of the market and continue moving forward. Thus, you can read in the current article about how the situation developed in the reporting season, and what difficulties had to be overcome on the way to successful work of grain processors.

flour groat UkraineGood start
Despite the low selling rates of finished products last MY, many producers of wheat flour did not lose hope for improvements in the new season. Since beginning of 2012/13 MY, flour producers continued developing export trading of their commodities. The persistence of exporters led to increased rates of shipments of flour milling products. According to the market players, in the current season export volumes of the finished products can significantly overcome the result of 2011/12 MY. According to data of the State Statistics Service of Ukraine, during the whole period of last MY Ukraine exported 115.2 thsd tonnes of flour. At the same time, in the current MY from July 2012 to January 2013 the shipments totaled 116.2 thsd tonnes. Taking into account that there is enough time until the end of the current MY, flour milling enterprises are quite capable to increase the volume of flour exports.
As for the main directions of flour supplies, we should note that in the current season the companies significantly increased the export volumes to the CIS countries. According to the State Statistics Service of Ukraine, in the period from July 2012 to January 2013 the supplies of flour finished products to the CIS countries grew to 62.9 thsd tonnes, an increase of 25% compared with last MY, when Ukraine shipped 46.9 thsd tonnes only. Also, in the reporting period wheat flour producers increased shipment volumes to the Middle East to 9.5 thsd tonnes, up 30% compared with the shipments in 2011/12 MY. Thus, Moldova (26.7%), Indonesia (25.3%) and Azerbaijan (17.7%) were the main three leaders of the countries-importers in the season. However, due to very rapid rates of flour shipments to Azerbaijan in recent years, the country can take the second position in the list of the main countries-consumers of Ukrainian wheat flour in the nearest future.
Naturally, we can not ignore the major companies-suppliers of flour for exports. According to the State Statistics Service of Ukraine, the bakeries LLC “Kombinat Khliboproduktiv TALNE”, “Lugansk-Niva Ukraine”, Vinnytsia Center of Grain Production #2 became the leaders among grain processing enterprises in terms of foreign shipments in 2012/13 MY. It is worth reminding that in 2011/12 MY, Vinnytsia Center of Grain Production #2, LLC “Kombinat Khliboproduktiv TALNE” and Company “Enlil” were the leaders of flour shipments.
Limitations – not an obstacle for the strong
According to the market operators, since the beginning of the current season flour millers were not expecting for new challenges. Thus, almost the entire first half of the current MY showed conventional, probably characteristic difficulties for the flour market. Traditionally, problems with getting rail cars for flour shipment by the milling enterprises and difficulties to ensure sufficient grain volumes for processing for the enterprises, prevented the stable operation on the market. However, many flour millers tried to cope with these difficulties, continuing to supply products on foreign markets as usual.
The official report on imposition of the special duty on wheat flour at 20% of the customs value by Indonesia since the beginning of December 2012, became rather unpleasant and unexpected news for exporters of flour at the end of the first half of 2012/13 MY. According to the market participants, the duties cover both imports of flour of food and feed purposes. According to grain processors, imposition of the reporting limitations on the imports of grain by-products to Indonesia was caused by the fact that the country intends to increase production of own flour volumes.
In the new circumstances, a number of traders, supplying the finished products to the country, reported that they plan to increase the share of flour presence on the domestic market, and look out for a way to deliver the finished products to other countries. Also, grain processors reported about their plans to increase flour shipments to the main countries-importers of Ukrainian products. In particular, countries of Asia, the Middle East and the CIS were called as potential buyers of flour from Ukraine.
Optimistic continuation
Since the beginning of 2013 the situation on the export market of flour did not worsened, despite the fact that Ukraine lost the main importer of its products – Indonesia. On the contrary, due to the increase of prices for grains and by-products on the world market, Ukraine received additional opportunities to press its major competitors – Russia and Kazakhstan – on the export market.
It should be noted that since the beginning of January 2013, Turkish companies reduced activity on the export market of flour. Previously flour producers in Turkey purchased grains from Russia and Ukraine, which are currently not active on the exports of milling wheat, and significantly reduced their grain processing operations. Despite the fact, some plants reported that Turkish flour exporters still remain the main competitors for the shipment of finished goods to African countries.
However, the plans of market participants to increase the supply of flour on the domestic market failed, due to the fact that since the beginning of 2013 the Agrarian Fund entered the market, which used its reserves and activated flour supplies to bakeries. According to the market operators, the stocks of flour products reduced the consumer demand for commercial flour on the domestic market. And grain processors had no choice but increasing the exports of flour.
Price situation
It is worth noting that in the second half of the season, the export price for the finished product became the top-priority of Ukrainian companies. As of early March 2013, flour milling complexes declared the selling prices for top-grade flour at the level of 360-415 USD/t from the enterprise, down 40-100 USD/t compared with the main countries-competitors.
Ukrainian flour exporters-export wheat prices
 Despite the fact that the offer prices for Ukrainian flour also increased compared with the beginning of the current MY, most companies are looking to the future with optimism. However, most Ukrainian companies are not afraid of the current lowering of flour prices on the domestic market of Russia. A number of companies plan to significantly increase the selling prices of flour, due to expensive raw materials, assuming that even with such increase of prices, the demand for the final products of Ukrainian origin will remain quite satisfactory.
Taking into account the above mentioned factors, we can safely say that most of the season was not bad for the exporters of flour in Ukraine. Despite all difficulties and obstacles, the companies managed to keep the main selling markets for their products. However, in recent years more and more experts are saying that operators of the Ukrainian flour market need to expand into new markets for wheat flour. In the current MY flour producers showed quite good results, while expanding the geography of supplies. However, the final sum up will be possible at the end of 2012/13 MY only.