According to APK-Inform, wheat prices continued to grow significantly in deep-sea ports of Ukraine this week.
“The appreciation is based on stable demand from importers and a number of tenders announced by Jordan, Saudi Arabia, Egypt and Ethiopia as well as on dominance of Black Sea wheat on Egyptian tenders amid further deterioration of crop prospects in France. Reserved farmers’ selling as well as hryvnia devaluation and sharp appreciation of Russian wheat supported the prices too”, - the head of the local markets department of APK-Inform, Anna Tanskaya commented.
She added that the upward trend has been observed since the last ten-day period of August. The appreciation has accelerated since the start of September due to concerns regarding winter planting campaign in Black Sea region amid long-lasting drought and deficit of moisture content in top-soil.
“According to the Ukrainian Hydrometeorological Center, the soil moisture content observed during the optimal time for winter planting campaign (September 11-25) is the lowest over the last 10 years. Thus, the mass winter planting campaign is counter-productive under such conditions and the sprouting and quality of already planted winter wheat will fully depend on precipitation. At the same time, it is very important for Ukraine to stay competitive on the global market that is rather difficult considering the upward revision of the global wheat crop forecast by USDA”, - A.Tanskaya added.
The bid prices of 2-grade and feed wheat set by traders have increased by 14-18% since the start of September and reached 7100-7350 and 7000-7250 UAH/t CPT-port correspondingly as of September 18.
Previous maximum level (6850-7400 and 6650-7050 UAH/t CPT-port) was achieved between late January and mid-February 2019, when the offer FOB prices were 10 USD/t higher compared to the current level.
