Weak demand and competition with Russia put pressure on Ukrainian wheat prices
Ukraine’s wheat prices continued to soften last week as subdued import demand, stronger competition from Russia’s new crop, and rising seasonal supplies pressured the market. Traders’ limited July buying activity and favourable harvesting weather further weighed on purchase prices.
Last week, the Ukrainian wheat market maintained a downward trend in prices. This is reported by analysts at White Brokers.
On DAP-port terms, purchase prices were formed at the following levels:
- Grade 2 wheat — $203/t;
- Grade 3 wheat — $208/t;
- Grade 4 wheat — $200/t.
White Brokers notes that the main reason for the price decline remains weak demand from key importing countries. Additional pressure on the market is exerted by Russian wheat, which has become more competitive due to the active arrival of a new crop.
Another factor analysts call the lack of significant contracts for shipment in July by most traders. The main export sales have already been formed for August, so companies are in no hurry to actively purchase grain on a DAP-port basis.
At the same time, the market continues to be influenced by the weather. Hot and dry weather in the south, west and partly in the north of Ukraine contributes to the almost simultaneous start of harvesting of early grain and oilseed crops in most regions of the country.
According to analysts, this increases the seasonal supply of grain on the market and creates additional pressure on purchase prices.
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Source : Ukr Agro Consult
