Grain drying in 2022/23: Farmers’ experience determine the trends

UkrAgroConsult

Article author:

Maksym Kharchenko

Freight Market Analyst

While the natural gas price in the summer of 2022 was UAH 25,000-30,000 per thousand cubic meters, in the fall the price actually rose to UAH 50,000. Natural gas share accounts for 50-60% of total drying costs due to the price hike.

Grain drying prices in 2022 gained 50% compared to 2021. In MY 2021/22, elevators gradually raised prices from UAH 90 to UAH 180 per metric ton/one percent moisture removed, but the drying costs rose at once to UAH 200-250 in the fall of 2022.

For sunflower, the removal of 2-5% of moisture had no significant impact on its final price, but the cost of corn drying is much higher. Fall rains force farmers to reduce the moisture content of corn in some cases by 10%. Large elevators charged UAH 2,500 per metric ton (USD 54 at the National Bank’s exchange rate) for drying corn with excess moisture content of 24-25% instead of standard 14.5%. The drying costs at on-farm elevator were less, roughly USD 35/mt.

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Tags: Ukraine, corn, prices, grain drying