The price of wheat in Ukraine fall under the pressure of increasing sentences from Russia

2021-02-04 12:05:12
Machine translation
The price of wheat in Ukraine fall under the pressure of increasing sentences from Russia

an Increase in supply of Russian wheat increases the pressure on prices in the physical markets. After the price reduction on the tender in Egypt, Russian wheat fell by 5-6 $/t to 257-288 $/t FOB, which negatively affected the prices of Ukrainian wheat, which was cheaper than Russian.

 

Last week, the procurement price of wheat in Ukraine decreased in the port to 270-275 $/t, recovered somewhat from Monday to 275-280 $/t, and yesterday fell back to 270-275 $/t or 9050-9350 UAH/t. Processors following the exporters have reduced prices with 9100-9200 UAH/t to 8900-9000 UAH/t with delivery to the plant.

 

the Producers has increased sales, but again stopped them after the next price drop. But the forward prices at 220-230 $/t in the port can not hope for price increase in the near future.

 

the price of wheat on world markets had a choppy: in Europe, they continued to fall and in the United States rebounded slightly due to speculators.

 

Traders disappointed by the results of the tender in Egypt, which confirmed the competitiveness of Russian wheat on the European, even though you entered the export duty.

 

  • the March futures for milling wheat on MATIF fell by 1.25 €/t to 224,75 €/t or 270,55 $/t

 

the wheat yesterday was trading in the red zone on the expectations of reducing export demand. However, after upgrading quotations week low, investors moved to speculative purchases, especially given the cold front approaching US and carries cold -20...-15 degrees, which can damage crops of winter wheat in the fields, not sufficiently covered with snow.

 

Prices also supported the restoration of the neighboring markets of soybeans and corn and optimism of experts, which increased the upper limit of export expectations from 600 to 700 thousand tons.

 

the March wheat futures in the U.S.:

  • 1.29 $/t to 238,19 $/t for SRW soft winter-wheat in Chicago,
  • by 2.39 $/t to 229,83 $/t for solid winter HRW wheat in Kansas city,
  • 1.47 $/t to 229,64 $/t on a firm spring HRS wheat in Minneapolis.

 

Current report on export sales can significantly affect price trends.

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