According to APK-Inform Agency, last week indicative prices for Ukrainian wheat continued decreasing, with the delivery on the FOB basis from Black Sea ports, under the pressure from both the domestic situation and very restrained demand.
The further decrease in import demand is caused by both the seasonal factor and numerous risks when purchasing Ukrainian products. The intervention of the Russian side in the formation of a queue for passing the inspections and even more ultimate threats of termination of the agreement due to non-fulfillment of its conditions added to the uncertainty regarding the period of the "grain corridor" validity and the approach to the Russian-imposed duration terms. In addition, most importers have formed stocks, which would be enough for a certain period, and are waiting for even more attractive prices as the start of the new season approaches. Many exporting countries have fairly large grain stocks and good prospects for production in the 2023/24 MY, which increases competition on the global market. Russian grain continued to be a strong competitor in the main areas of sales for Ukrainian wheat, so its further price reduction increased the pressure on Ukrainian wheat.
Last week, indicative offer prices for 12.5%, 11.5%, and feed wheat decreased to 270-280, 265-275, and 240-260 USD/t FOB, respectively.
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