Export prices of Ukrainian wheat started to grow. What is going on?

Source

APK-Inform

9828

According to APK-Inform, since the middle of the current week, the export prices of new-crop wheat (FOB basis) started to grow in Ukraine.

“The upward trend was caused by the appreciation of wheat on СВОТ and Euronext due to the lowering of estimates of planted area under US wheat by USDA as well as the expectations of downward revision of wheat production forecast in France. The situation stemmed from the deterioration of crop condition in the USA and the expected significant decline of the average yield of wheat in France. Moreover, the signing of the Memorandum that could limit sharply the export of Ukrainian wheat in 2020/21 MY (to 17.2 mln tonnes according to insiders) as well as the prospect of decline of wheat crop in Ukraine in 2020 due to the unfavorable weather supported the prices”, - the head of the local markets department of APK-Inform, Anna Tanskaya commented.

Thus, as of July 3, the offer prices of 12.5% wheat and feed wheat increased by average 3 USD/t to 196-201 and 184-187 USD/t FOB correspondingly.

“The trade activity was moderate due to the high spread between the offer and bid prices. At the same time, the upward trend could be supported by problems with quality”, - the expert summarized.
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