Term

Storage discount

Also known as: carrying cost

Full explanation

Elevator storage cost components April 2026: (1) intake UAH 40–80/t one-off; (2) storage UAH 120–280/t/month (Odesa the most expensive due to export demand; Poltava/Cherkasy cheapest); (3) drying UAH 35–65/t per 1% moisture reduction; (4) cleaning UAH 25–40/t one-off; (5) transloading UAH 20–40/t; (6) outbound UAH 30–50/t. For silobags: storage UAH 30–80/t/month with no drying/cleaning charges. Own elevator: depreciation + energy ~UAH 60–100/t/month. Farmer's key decision: hold or sell? If spot price + expected rise ÷ storage cost <10% annualized — sell. Example: wheat UAH 8,300/t in August, expected rise to UAH 9,100/t in February (+10%), storage 6 months × UAH 200/t/month = UAH 1,200/t cost (14.5% of price) — holding is uneconomic, sell. Warehouse receipts let the farmer use the stored grain as bank-loan collateral.

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