According to APK-Inform, export prices of Ukrainian wheat started to decline in the middle of the current week.
“The key pressure came from decline of wheat prices on the global stock exchanges due to rain across the USA and Russia as well as progress of winter planting campaign in the Black Sea region. Moreover, the bearish factor is a new wave of concerns raised by possible decline of the world economy amid worsening of COVID-19 pandemic as evidenced by yesterday decline of stock market indexes and crude oil”, - the head of the local markets department of APK-Inform, Anna Tanskaya explained.
In the middle of the week, Ukrainian traders started to decrease their prices of milling and feed wheat by 50-150 UAH/t. As of October 28, bid prices of 2-grade and feed wheat totaled 8150-8400 and 8050-8350 UAH/t СРТ-port correspondingly, that was still up by average 100 UAH/t compared to the end of the last week.
Thus, the bid prices of wheat exceeded by 1000-1300 UAH/t or 14-18% the historical high reached in January-middle February of 2019.
“Currently, the prices moved within the existing range. However, it is a matter of time. Traders keep FOB offer prices. At the same time, importers decreased their bid prices significantly and do not want to set them on maximal levels. Impressive shipments of Ukrainian wheat continued to support the prices amid the existing limit export volume set by the Memorandum. Restrictions of Russian export since January 2021 as well as reserved farmers’ selling keep the prices high too”, - she summarized.
