Price of Ukrainian wheat in ports surpassed psychological barrier of 10000 UAH/t

Source

APK-Inform

1346

According to APK-Inform, the prices of wheat are growing steadily in Ukrainian seaports this week.

“The prices in ports are supported by an ongoing appreciation of prices on FOB market, decline of supply on the global market due to unfavorable weather in the key producing countries, cut of world wheat production and stocks forecasts by the IGC, slowdown of wheat harvesting campaign in Australia due to rains that can also hurt the grain quality, weather cataclysm in Canada as well as concerns about the next crop amidst narrowing of planted areas in the key regions and high prices of fertilizers. Despite the favorable rains in some Ukrainian oblasts, the worries about the crop conditions remain on the front burner. Additionally, the prices are supported by an expected strong world demand and a number of tenders announced and held by the key importers”, – commented Anna Tanskaya, head of the department of local markets with APK-Inform.

As of November 24, the bid prices of 2- and 3-grade wheat amounted to 9700-10200 and 9650-10150 UAH/t СРТ-port in deep-sea ports and 9250-9600 and 9200-9550 UAH/t СРТ-port in shallow ports. Only few buyers announce the minimal prices, and it is almost impossible to buy at these prices.

The upward price trend has been prevailing on the wheat market since the start of 2021/22 MY. The prices have been growing by 100-250 UAH/t every week since the late October and even by 250-400 UAH/t last two weeks.

“The prices increased by 100-150 UAH/t to 9950 UAH/t CPT-port (2-grade) and 9900 UAH/t СРТ-port (3-grade) on Monday. It was higher that the historical maximum of 2020/21 MY, when the prices reached 9750 and 9700 UAH/t. After one-day break, the bid price continued growing and exceeded a psychological barrier of 10000 UAH/t. The prices have a potential for further increase. We will see how the week will end and whether the farmers keep their wheat waiting for higher prices. This season, unlike the previous one, wheat crop in record high in Ukraine. Therefore, despite some quality problems, it is worth to remember that the global market conjuncture is changeable, while the Ukrainian wheat should stay competitive”, – summarized A. Tanskaya.

Detailed information about the development of Ukrainian wheat market you can find at our website in the section “Market” as well as in our weekly periodical “AgriMarket Weekly”.

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