Source: APKinform (Ukraine)
The Ukrainian wheat market is showing stable price growth, with the main factors influencing price dynamics being a decline in grain yields in Europe and Australia, high demand from Asian importers and a limited supply of grain on global markets. This was the conclusion reached by analysts from the agricultural cooperative PUSK, which was established as part of the All-Ukrainian Agricultural Rada, as reported by the UAR press service on October 16.
As the experts noted, such a trend will continue at least until the end of October.
“Against the background of climatic problems and lower harvests in the European Union, Ukrainian wheat is becoming more competitive, especially for Asian countries. The conditional price at the ports is now approaching 210 US dollars per ton, and there is potential for an increase to 220 US dollars per ton,” the analysts said.
The high export rates for Ukrainian wheat are also a weighty factor in the price increase.
“Exports from Ukraine have already reached 900,000 tons, which indicates stable demand. The market is working on wheels, with no significant congestion at the ports, which supports price stability,” explains PUSK.
In addition, prices are being supported by news from the Russian market.
“Russian exporters have agreed on a minimum price for their wheat of USD 250 per tonne, which gives the Ukrainian market the opportunity to strengthen its position as Asian importers look for alternatives in the face of shortages,” the experts say.
The price of food wheat is also rising on the Ukrainian domestic market.
“The price of grade 2 wheat is already above 9700 UAH/ton, making the domestic market more attractive for selling products. The limited supply of grain will cause a further price increase. This trend is expected to continue until December/January, when prices at the ports may reach USD 230 per ton,” the PUSK analysts forecast.