July 26, 2012

 

Ukraine's wheat prices up 13.5% in July

 
 

Ukraine's wheat prices rose by 13.5% over the month, as it reached its highest point this year to US$238 per tonne.

 

Wheat was more expensive only on July 1, 2011, when the price was US$248 per tonne, Kommersant-Ukraine reported. At the same time, the export price rose by 17.4%, to US$310 per tonne.

 

As for the price for corn, it grew by 8.4%, to US$201 per tonne, and the export price rose by 14% to US$278 per tonne.

 

This situation could be explained by a rise in global grain prices. For example, September wheat futures on the Chicago Mercantile Exchange rose last month by more than a third, to US$9.4 per bushel, or US$345 per tonne. Corn now costs US$323 per tonne.

 

Despite a rise in prices, farmers and grain traders do not rush to sign contracts, expecting that the grain price will rise even more. Earlier it was reported that grain prices had reached their historic high in Russia. In late June 2012, the pride of Russian wheat at Black Sea ports reached RUB9,000 (US$275) per tonne.

 

World prices for wheat, corn and soy rose to a record figure since 2008 due to drought in the US. Grain and oil-bearing crops rose in price from mid-June by 10%. Latin American countries were also affected by the drought.