Wheat prices in Ukrainian ports are falling rapidly due to the completion of contracting shipments
Wheat prices at Ukrainian ports are falling fast as traders have secured near-term volumes. As of July 24, DAP prices at Pivdennyi, Odesa, and Chornomorsk ports dropped to \$223–230/ton and are still declining. Export margins are tightening, prompting expectations of further price cuts.
Wheat prices in Ukrainian ports are rapidly declining, as traders have already contracted the main volumes for the nearest shipments. According to White Brokers, purchasing activity has stopped and rates have begun to fall rapidly. As of July 24, prices on DAP terms (ports of Pivdennyi, Odesa, and Chornomorsk) amounted to $223-230/t, but continue to decline.
The current price levels remain uncompetitive for further sales on FOB terms, where prices are at $225-234/t. Given the freight margin of about $10/mt, the margin for exporters is shrinking, which puts pressure on the market. Participants expect further decline in quotations in the coming days.
To Read more about Wheat News continue reading Agriinsite.com
Source : Ukr Agro Consult
