Ukraine feed wheat price to stabilise on demand

Ukrainian domestic feed wheat prices are likely to stop falling as traders resume purchases for export, according to an analyst.

Kiev-based ProAgro agriculture consultancy said in a statement that domestic feed wheat prices fell by US$4 per tonne over the last week compared with a decrease by US$10 a week earlier.

ProAgro also said that the current decrease in prices was even smaller which was caused by an increase in demand from exporters.

Farm Minister Yuri Melnyk said on Wednesday Ukraine's intervention fund would start feed wheat purchases in stocks and that could stabilise local prices.

According to data, Ukrainian-origin feed wheat cost between US$138 and US$165 per tonne EXW compared with US$159 and US$175 a week earlier.

Ukraine is likely to boost its wheat harvest to at least 24 million tonnes in 2008 against 13.7 million in 2007.

Analysts have said wheat exports could jump to 8.2 million tonnes in 2008/09 season (July-June) from 1 million in 2007/08. Feed wheat is likely to amount to half of the shipments.