Grain prices in Ukraine are rising rapidly: market analysis for July 2024

During July 2024, there was a significant increase in the prices of grain and oil crops in Ukraine. This growth continued the trends observed in previous months, supported by internal and external factors. This conclusion was made in the analytical report of AgroMarket UUB, published by the Ukrainian Universal Exchange.

According to the report, wheat prices in Ukraine were formed under the influence of several opposing factors: growing domestic demand, limited supply on the domestic market and downward price dynamics on the export market. At the end of July, the average price of 2nd and 3rd grade wheat was UAH 7,042-6,736/t, and fodder wheat cost UAH 5,911/t, which is 3.10% more compared to the beginning of the month.

Price indicators for corn also showed growth. According to AgroMarket UUB, the average price of corn (EXW) at the end of July reached UAH 6,317/t, which is 3.81% higher than at the beginning of the month.

The Ministry of Agrarian Policy of Ukraine reported that at the beginning of August, more than 25 million tons of grain and more than 3 million tons of oil crops had already been harvested. The total harvesting area was more than 7.3 million hectares, which made it possible to obtain 28.5 million tons of harvest. According to forecasts of the Ukrainian Grain Association (UZA), in 2024, the total harvest of grain and oilseed crops in Ukraine may amount to about 71.8 million tons, of which 49.9 million tons are grain, and 21.9 million tons are oilseeds.

However, agro-meteorological conditions in July were not favorable for the development of late crops. According to the data of the Ukrhydrometeorological center, the prolonged heat and lack of precipitation negatively affected the formation of the crop of vegetables and vegetable crops.