Ukrainian Ministry of Agrarian Policy forecasts new crop wheat UAH950-1,050 per MT starting price

22.06.2007 09:27 "Agro Perspectiva" (Kyiv) — Ukrainian Ministry of Agrarian Policy forecasts new crop 3 class wheat UAH950-1,050 per MT starting price, reported Borys Supikhanov, First Deputy Minister of Agrarian Policy, on Jun 20.

“We forecast price will be about UAH950-1,050 per MT. We think it so,” declared Supikhanov.

As to him, new crop grains exchange tenders will start only since 1 month; State Food Fund grains purchase prices will be set up to last 3 exchange sessions fixings.

As to Agrarian-Industrial Complex Vice Premier Viktor Slauta, 3 class wheat UAH950-1,050 per MT starting price will assure 15-20% profitability in regions with ≈ 15,0-17,0 metric centners per ha wheat yield.

“For regions with 5, 8 or 10 metric centners per ha wheat yields, sales will not be profitable even at this starting price, – and therefore these regions agricultural companies will receive direct financial support due to Government Decrees,” admitted Slauta.

As to Agro Perspective earlier report, Ministry of Agrarian Policy had fixed new MY

(Jul/07-Jun/08) minimal purchase prices for soft wheat: 1 class – UAH1,000 per MT;

2 class – UAH900 per MT; 3 class – UAH875 per MT; 4 class – UAH820 per MT. Hard wheat minimal prices were fixed UAH1,090 per MT (1 class); UAH1,300 per MT (2 class);

UAH950,0 per MT (3 class); UAH860 per MT (4 class); UAH780 per MT (5 class).

These prices are to be used for State grains reserves purchases (to begin since Jul 1, 2007).

As to Agro Perspective, this year Ukraine is going to form ≈ 3.5 mn MT State grains reserves.

In meanwhile, Ukrainian southern regions agrarians have already started grains harvesting; these regions grains average yield is 16,8 metric centners per ha.

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