The Ukrainian wheat market is showing steady price growth. The main factors affecting the price dynamics are lower yields in Europe and Australia, high demand from Asian importers and limited supply of grain on world markets.

This statement was reported by the analysts of the First Ukrainian Agricultural Cooperative (FUAC), established within the UAC. They predict that this trend continues at least until the end of October.

“Amid climate problems and lower harvests in the European Union, Ukrainian wheat is becoming more competitive, especially for Asian countries. At present, the conditional price in ports is approaching 210 USD/t, and there is a potential for growth up to 220 UDS/t,” said the FUAC analysts.

Another important factor which influence the price growth is the high rate of Ukrainian wheat exports.

“Exports from Ukraine have already reached 900,000 tons, which indicates stable demand. The market is working on just-in-time system, without significant accumulations in ports, which maintains price stability,” the FUAC explained.

Additionally, the prices are supported by the news from the Russian market.

“Russian exporters have agreed on a minimum price for their wheat at USD250/t, which gives the Ukrainian market opportunities to strengthen its position as Asian importers are looking for alternatives in the face of shortages,” experts said.

The price of milling wheat is also growing on the domestic market of Ukraine.

“The price of the 2nd class wheat is already above 9,700 UAH/t, which makes the domestic market more attractive for sales. The limited supply of grain will stimulate further price growth. It is expected that this trend will continue until December-January, when prices in ports may reach 230 USD/t,” predicted the FUAC analysts.