Export prices of Ukrainian wheat exceeded 21-months high

Source

APK-Inform

10254

According to APK-Inform, export prices of Ukrainian wheat have been growing since the third ten-day period of August and have already exceeded the highest level since February 2019.

“Despite the upward revision of global wheat crop and stocks forecasts by USDA to record levels, the prices were supported by concerns regarding winter planting campaign and crop conditions in the key producing regions (particularly, the Black Sea and the USA) amid adverse weather. High demand from importers and new tenders announced by Turkey and Algeria pushed the prices up as well. Algerian state grain buyer raised the available limit for bug-damaged 12.5% wheat to 0.5% that opens the door of Algerian tenders to Black Sea wheat”, - the head of the local markets department of APK-Inform, Anna Tanskaya commented.

As of the morning of October 20, the offer prices of 12.5% and feed wheat reached 255 and 250 USD/t FOB deep-sea ports correspondingly (delivery in late October and November), up by 6-7 USD/t compared to the week ago level and up by average 50 USD/t compared to the third ten-day period of August.

“According to the Ukrainian hydrometeorological center, by the start of the second ten day period of October, 60-65% of area has got the sufficient moisture content for autumn vegetation of winter crops. This fact combined with high daily average temperatures (above +15°С) created perfect conditions for sprouting and development before wintering. However, this bearish factor was offset by expected decline of temperatures that would stop the development of plants. Thus, farmers are reserved sellers pushing the prices up again”, - the expert summarized.
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