Prices of Ukrainian wheat pressured by slow export by “grain corridor” – APK-Inform




Despite the strengthening of global quotations at the end of the last week (partially due to new Russia’s missile attacks on Ukraine and prospects of lower grain harvest in Ukraine in 2023), the indicative FOB prices of Ukrainian wheat remained unchanged in the deep-sea ports of the Black Sea, while the price on CPT-port basis began to decline, head of local markets department of APK-Inform Anna Tanskaya said.

"Ukrainian grain remained one of the cheapest in the world amid high risks and a significant reduction in the number of ships arriving/departing from the ports of Great Odesa. At the same time, there was a further decrease in freight rates as well as costs of rail and road logistics", – the expert said.

She also added that the sabotage of Russian inspectors working as part of the JCC did not allowed to increase the pace of exports from deep-sea ports. Russians deliberately reduce a number of inspections of vessels in the Bosporus (to 2-3 per day instead of 15-18 or more required) and prolong the time of inspections (by checking the parameters that are not regulated by the JCC documents and have nothing to do with the subject of the inspection).

Thus, by the end of the last week, traders' purchasing prices of food and feed wheat decreased by 5-10 USD/t to 200-225 and 180-205 USD/t CPT-port in the deep-sea ports.

"As expected, traders began to force purchases willing to sell as much agricultural products as possible by sea before the next prolongation of the "grain agreement". It significantly supported grain prices on CPT-port basis. However, most of traders quickly covered their current needs and formed the necessary stocks, so by the end of the week some grain traders suspended purchases and began to reduce prices", – A. Tanska explained.

Follow our newswire to stay informed about further development of Ukrainian grain market. More detailed information is available for those subscribed at our weekly reports.