Ukrainian wheat started to fall in price after reaching the historical peak

Source

APK-Inform

2929

According to APK-Inform, the export prices of Ukrainian wheat started to decline slightly at the end of the current week.

“For now, the changes of bid prices of wheat are observed within the formed diapasons, however, it is the matter of time. As usually, traders hold off on reducing FOB offer prices. At the same time, importers decreased their bid prices notably, despite the concerns regarding winter planting in Black Sea region and lowering of wheat crop prospects in Argentina. The key pressure came from the depreciation of wheat on the CBOT amid low speculative selling as well as appreciation of the USD and decline of competitiveness of US wheat. Depreciation of wheat on the Euronext amid forecasted rains by October across almost the entire Europe added the pressure”, - the head of the local markets department of APK-Inform, Anna Tanskaya explained.

At the end of the current week, Ukrainian traders started to lower the prices of milling and feed wheat by 50-100 UAH/t. As of the morning of September 25, the bid prices of 2-grade and feed wheat reached 7300-7550 and 7200-7450 UAH/t СРТ-port correspondingly that is still up by average 200 UAH/t compared to the last week level.

Thus, the minimal bid prices exceeded the historical peak of late January-mid-February 2019 by 450-550 UAH/t, maximal - by 150-200 UAH/t.

“Overall, this situation reminds what we have been observing on Ukrainian sunflower oil market during last two weeks. The fact that some traders started to decrease wheat prices should stimulate farmers to sell their crop. Moreover, the weather conditions could improve in Black Sea region and rains are expected that will pressure the prices”, - A.Tanskaya summarized.
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