Low yields compel farmers not to sell their wheat for state storages. Analysis by Info-Prim Neo

This year’s low harvest rates compel the farmers not to sell their wheat to the state storages. Some of the farmers are waiting for better prices while others are keeping their cereals for sowing, economic expert Viorel Chivriga told Info-Prim Neo. According to him, wheat is purchased on the Moldovan markets for 3-4 lei/kg, depending on the quality. On the external markets, the wheat is officially sold for 230-270 USD/tonne. Even so, the demand is not covered by the wheat dealers. Moreover, the developments in the grain market are very unstable and worsen the situation. [By the end of the harvest period conditions for cereal imports will be almost ideal] Viorel Chivriga says the situation in the grain market will soon stabilise, thanks to the government’s intervention instruments for stimulating grain imports. The laws regulating customs duties are already being revised, with a view to exempting imports of wheat, barley, corn and fodder from customs duties and tax on sales. In addition, importers of grain will be exempt from VAT. Furthermore, the conjuncture in some markets, like that of Russia and Kazakhstan, are becoming more favourable for foreign importers. The prices of grain fall significantly. In the European regions of Russia, at the end of July, the following prices were recorded: 233.59 USD for III quality wheat (gluten content of 23%), 225.98 USD – IV quality wheat, 192.97 USD for food rye, 207.42 USD for fodder wheat, 225.59 USD for fodder barley and 253.91 USD for fodder corn. Due to the low prices, conditions for grain importers will be almost ideal by the end of the harvest period.