Currently, there are no factors on the Ukrainian wheat market that could contribute to price growth. The situation with the sale of both old and new crop wheat is complicated by the suspension of the grain agreement. Meanwhile, not all agricultural companies have the capacity to store two harvests and are trying to sell large quantities, as the winter wheat harvest is about to start.

This issue was discussed on May 23 during a weekly briefing organized by the analytical center of the PUSK cooperative, created within the framework of the UAC.

"The grain agreement has been extended until July 18, but it works only on paper. Yesterday, Russia approved only one ship out of four offered by Ukraine. The world is switching to trading new crops on a forward basis, in particular, China is looking for grain. And Ukraine is following its own trends: since the Black Sea grain corridor is not working, wheat is being shipped to small ports. Last week, a significant supply of grain from agricultural holdings began to form, and their logistics are not designed to store two harvests," said the analytical department of PUSK.

In general, the market tends to decrease prices, which are in the range of 180-190 USD/t for food grains and 170 USD/t for feed grains. On average, prices will not exceed 175$/t in June.

"The wheat market is entering the off-season. The global demand is starting to reduce, there are no factors for the price growth. However, the situation on the global market may change, as the US, according to the latest crop tours, is expected to have a record low harvest due to weather conditions. In particular, wheat has suffered significantly due to severe frosts, and its condition is unlikely to be improved. One of the largest flour mills in the US is already contracting wheat from Germany and Poland," PUSK added.

Tuesday, 23 May 2023

 

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