Institute of Agricultural Economics: the decrease in the producer price of grain continued

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The producer price of edible wheat without VAT and transport costs fell by 27 percent, that of feed wheat by 37 percent, and that of feed corn by 23 percent in one year. Industrial sunflower seeds became cheaper by 34 percent and rapeseed by 29 percent. At the same time, the retail purchase price of sunflower edible oil has increased, at the end of March it cost HUF 702, while the previous week it cost HUF 654, and a year earlier it cost HUF 509, they wrote.

The price of edible wheat decreased significantly

The report reveals that the producer price of edible wheat has decreased significantly since the beginning of the year, falling from HUF 120,000 to HUF 87,600 per ton. The prices of the other two crops decreased even more significantly, their prices per ton exceeded HUF 120,000 at the beginning of the year, but by the end of March, those of fodder wheat decreased to HUF 81,300 and those of fodder corn to HUF 86,100. The change in prices for cereals has developed similarly in the last 2 years, at a lower pace in the first three months of 2021, and at the beginning of 2022 they all increased significantly.

A smaller yield is expected this year

International forecasts suggest that the global wheat harvest will be smaller than the needs, so global reserves will decrease, according to the report. At the same time, the rainy weather in Europe was good for the plantations, and the winter wheat production area also increased by 1 percent year-on-year, reaching 22 million hectares in the EU member states. Its production volume may increase by 4 percent year-on-year, approaching 130 million tons, reads the AKI report.

MTI