Many Ukrainian companies preferred not to risk, and avoided contracting with new crop grains — expert

Source

APK-Inform

9026

In terms of the downward price environment for selling of the growing volumes of agricultural products, Ukrainian producers had to reduce the marginality, but in the future the prime cost can still grow, due to launching of the land market, declared, the Business Development Manager at Maxigrain S.A., Elena Neroba, to APK-Inform journalists.

According to her, almost all producers faced losses, due to the foreign exchange differences, and many traders worked within the margin of 1.5-2 times lower than usual. To date, wheat and vegetable oils have good fundamental support, which in the coming months will contribute to restoring of the margin.

At the same time, the expert considered that many companies preferred not to risk, and avoided to make contracts for supplying of new crop grains in the spring/summer.

You can read more detailed information about the trend, in the interview with E.Neroba "Record exports vs. trade barriers, or How to survive as a trader" in the weekly issue Agrimarket Weekly #49 dd. December 16, 2019.

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