As UAC predicted earlier, the price of sugar in Ukraine stopped growing and even began to decline. From the beginning of the year, the wholesale prices fell to UAH 7000 per ton. This trend was caused by several factors. Lack of funds for the planting season was the main reason of decreade in the price of sugar, as it forced farmers to sell their own stocks of sugar, which they held in anticipation of further price increases. Also, sugar prices on the world trading floors plummeted from a peak of $755/MT in late Janaury to $504/MT on March 31, 2010, which has significantly told on Ukrainian domestic prices.
World grain and oilseed export prices mostly posted net declines over the past two months, but rice values rose sharply. Market activity was frequently light during the holiday period and technical trading and movements in currencies influenced prices.
Conditions for a portion of Ukraine’s 2010/11 winter grains have been alarmingly unfavorable due to persistent dryness. Weather data and satellite imagery indicate that both surface and subsurface moisture during August and September were the lowest in recent years. Although the situation has improved following rainfall in late September and early October, the earlier dryness hampered the emergence and establishment of winter crops in significant areas of southern and eastern Ukraine. Subsurface moisturereserves remain significantly below normal. (View surface-wetness graphs of southern, eastern, and central Ukraine.)