According to APK-Inform, the bid prices of wheat decreased to the level of mid-September of 2020 in deep-sea ports of Ukraine.
“The trend is based on the lasting and fast moving decline of wheat prices on FOB market amid the same development on the Russian market, favorable weather in the key producing countries (including, the EU and Black Sea) and prospects of high global wheat crop in 2021. The development of the world market additionally pressure the prices. Besides, the prices were pressured by some increase of farmers’ sales and moderate demand from traders, who mainly suspended purchases of wheat due to low external demand and gradual approach of the exported volumes to the limit set in the memorandum”, - the head of the local markets department of APK-Inform, Anna Tanskaya commented.
As of April 7, the bid prices of 2-grade and feed wheat declined to 6800-7300 and 6650-7150 UAH/t CPT-port that matched the level of mid-September. Few traders, who need to perform signed contracts, set the maximum bid prices.
“Despite the sharp decline of price of Ukrainian wheat, importers do not show higher demand. Many of them are waiting for further decrease of prices or prefer to contract new-crop grain. At the same time, last Egyptian tender for import of new-crop wheat revealed quite good competitiveness of Black Sea grain. However, rather low prices additionally weighted on the market”, - A.Tanskaya summarized.