Ukraine has harvested 12.5 million tons of wheat with record yields. However, the key problem with the new harvest was its poor quality: due to weather conditions, the grain has a low protein content. Most exporting countries also face problems with grain quality.

This issue was discussed on August 8 during a weekly briefing organized by the analytical center of the PUSK cooperative, created within the framework of the UAC.

"This year, the volume of feed grain may account for 60% of the new harvest. In previous years, this figure was 30%, and the rest, 70%, was food grain. Since we will receive no more than 40% of high-protein wheat this season, this will affect pricing. The spread between fodder and high-protein wheat is already 15-18 USD/t, and may exceed 20 USD/t in the future," said the analytical department of PUSK cooperative.

Other countries also have plenty of feed grain: France, Germany and Russia have problems with wheat quality. The current season will be problematic with the supply of food grains all over the world.

"Those who have high-protein wheat sell it to Lithuania and Germany, while the offer in small ports is low.  While last season the markets were in surplus, with traders dictating prices, now we are moving to a deficit model. Farmers are not bringing wheat to the ports, so prices will rise. Currently, the notional prices on CPT Danube ports are 170-175 USD/t, and by the end of the week we can expect the level of 180 USD/ton. By the end of August, the prices may reach above 200 USD/t, as the global demand is just starting to grow, and there will be news about quality problems in other regions," the analysts added.