The grain market has a unique situation: the prices of rapeseed and wheat are growing and almost exceed global prices.

Trader’s demand for rapeseed and wheat is growing. At the same time, domestic prices for these crops are close to global market prices and almost exceed them, said Ivan Dimov, the founder of DMV Group.

“They have to fulfill contracts, and ships are standing, so traders buy either at a loss or with the expectation that the price of grain will rise. These are primarily multinational companies. Inflation is also having an affect the situation because the exchange rate increased by more than a hryvnia over the past week. An anomaly has resulted: usually during the harvest and, accordingly, for a large amount of grain, the price falls, but now it is the opposite,” he noted.

Due to this situation, farmers are holding back on sales, so traders are forced to raise the price they offer.

Today’s price for rapeseed is a little over ₴23,000 per ton ($550 including VAT). If you calculate transshipment, logistics, and the price at the factory in Germany, then the price is off the charts. The story is similar for wheat. The global price is falling, it has recently dropped by $30-$40, but in Ukraine, it is growing.