Ukrainian farmers are actively selling the future crop, but they are in no hurry to sell the old one
Participants of the agricultural market of Ukraine have crossed the equator of my 2021/22, and now they are concerned about the implementation of crop residues-2021 and forward sales of the crop-2022. Latifundist.com with reference to the data of the brokerage company SPIKE BROKERS.
Now agricultural producers are actively selling off the future crop, but they are holding back sales of the old one and selling it in separate batches if they need funds against the background of the rapid devaluation of the hryvnia and in anticipation of rising prices. At the same time, buyers hope for the strengthening of the hryvnia and are in no hurry to raise prices.
Producers, taking into account the seasonality of the formation of prices for mineral fertilizers, buy them using the arbitration method, that is, they simultaneously sell the future crop and purchase fertilizers for it.
According to SPIKE BROKERS, the best price was given to those sellers who quickly returned to the market after the holidays. If as of January 4, forward prices for wheat of the 2022 harvest with delivery in August-September were 2 282/277/267/t CPT – port, then on January 14 they fell to 2 272/269/252/t.
Currently, the most attractive crops for forward sales are the following::
- wheat, for the delivery of which in August they offer 2 265-275 / ton,
- corn, for which they offer 2 240 / ton with delivery in November-December,
- rapeseed – at 6 615 / ton for deliveries in August.
Experts believe that the current forward prices are very good, but you need to understand what their dynamics will be. “In an atmosphere of unstable situation, producers are disciplined and methodical in their approach to selling their products, both old and future crops,” SPIKE BROKERS said.
It is expected that in 2022 the trend of rising energy prices will continue, which is confirmed by an increase in gas prices and logistics costs, and a break in supply chains. The relationship between different markets will become stronger, for example, the impact of the resource and Technology Market on grain markets.
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