Price difference for fodder and milling wheat over 2 seasons makes about USD 20 per ton

Over the past two seasons, the average difference in the domestic market of Ukraine between the demand price for 6th class fodder wheat and 2nd class milling wheat converted to USD at the rate of the NBU was about USD 20 per ton.

This was informed by Andrey Kupchenko, the grain market analyst at APK-Inform Agency, in the framework of the Quality and Safety of Grain workshop, APK-Inform reports.

According to him, in comparison with the current price level, this spread is about 10% of the average market price for one ton of wheat. At the same time, for some regions of production, this difference in price may not compensate for the additional costs for quality improvement.

"In addition, considering the price premium for milling wheat as an instrument for stimulating quality improvement, one should note the dilemma: the price spread will be the greater, the smaller the supply of quality wheat is," the expert commented.

Previously it was reported that forecast for global wheat production in MY 2017/18 increased 0.96 million tons to 759.75 million tons.