The Ukrainian wheat market continues to function in conditions of uncertainty regarding the extension of the "grain agreement", which restrains trading activity and puts pressure on bid prices in seaports, said Anna Tanska, head of the department of grain and oil markets with APK-Inform.
"Despite the optimism of the UN regarding the continuation of the "grain agreement" after its second term expiration in March and the announcement of the start of negotiations already this week, the local market remains quite restrained. This intensifies the pressure on bid prices in the ports of Great Odesa and leads to a significant decrease in the purchasing activity of traders in this direction. Currently, most of them are focused on the shipment of the grain volumes already formed in the near-port areas and are suspending purchases due to the low contracting activity," A. Tanska commented.
She also added that under the current conditions, there is a further increase in shipments via alternative routes, which elevates the imbalance between supply and demand and leads to lower prices.
In particular, the expert reported that the bid prices in the Danube ports for milling and feed wheat as of last week ranged between 217-223 and 208-216 USD/t, or 8’600-9’150 and 8’000-8’570 UAH/t CPT-port, respectively.
The bid prices for milling wheat in the ports of Great Odesa mainly ranged between 204-212 USD/t or 8’000-8’300 UAH/t СРТ-port. At the same time, intermediary companies declared lower prices, which, depending on the terms of delivery, ranged between 178-195 USD/t CPT-port.
Bid prices in Mykolaiv port for 2nd and 3rd class wheat mostly did not exceed 7’400-7’500 and 7’100-7’250 UAH/t СРТ-port respectively.
Prices for milling and feed wheat in the port of Constanta (Romania) decreased by 2-8 USD/t and mostly amounted to 280-285 and 275-280 USD/t on DAP/CIF terms.
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