The key wheat exporters, including Ukraine, will reduce their supplies in the new season. Ukrainian wheat, which is in high demand on the global market, has started to rise in price.

This issue was discussed on April 9 during an analytical briefing of the First Ukrainian Agricultural Cooperative (FUAC) created within the UAC.

"In April, we have already exported 541,000 tons of wheat. Some of the products that could not be exported in March will be shipped from Ukraine in April. Therefore, this month we can reach the export level of 3,000,000 tons - this will happen due to the March contracts. Importers are ready to wait for wheat deliveries, as demand is growing. The increase in demand is supported by prediction of a drop in production in the EU, the US and Ukraine, i.e. all key exporters. While last season Ukraine exported a lot due to large stocks, this year they will not exceed 1,000,000 tons, as ports are working. At the same time, the sown areas are shrinking, and less wheat will be harvested. The first estimates of the export potential of Ukrainian wheat in the new season have already been reduced by 3-4 million tons. Although the Ukrainian CPT market saw a drop in prices last week, the market is coming back to life, with prices returning to previous levels and set to grow. Our main competitor - Russian wheat - has risen in price by USD8-10 per ton in recent weeks. The price tags for Ukrainian wheat will rise by at least USD2-3 per ton by the end of the week," the analytical department of FUAC mentioned. 

By the end of the week, the conditional prices for wheat on CPT basis will be about USD175 per ton in the Danube ports, USD170 per ton in the deep-water ports, USD198-203 per ton on DAP Constanta basis.

"Demand for wheat is expected to be moved on the wheat market upward," the analysts added.