Purchase prices for wheat in the ports of Ukraine again increased to 8000 UAH / ton

Wheat prices continue to rise rapidly in Ukraine, and yesterday some buyers raised purchase prices for food wheat of the 2nd Class with protein of 12.5% to 8000 UAH/ton or 260-263 $/ton with delivery to the port.  

Starting from July 1, Wheat prices increased by UAH 1,500/ton, and only in August by UAH 1,000/ton against the background of quality problems and following a rapid rise in the price of Russian wheat.

Due to prolonged precipitation in Ukraine, the share of food wheat will be less than last year, when it was 80%. Due to the low nature and Fusarium damage, even part of the wheat with high protein is transferred to feed. The difference between prices for food and feed wheat increased to 300-320 UAH/ton, while last year it was 50 UAH/ton.

In Russia, the Volga region confirms a low wheat yield, while in the east of the country it corresponds to last year's. As of August 10, 55 million tons of wheat were threshed in the country from 16.5 million hectares or 58% of the area with a yield of 3.34 t/ha (3.67 t/ha last year).

The news about the low yield of winter wheat in Kazakhstan increases pressure on the market. The head of the Ministry of Agriculture of the country said that the weather conditions of the current season negatively affected the yield of grain crops. Therefore, as of August 1, the average grain yield is 12.3 centners/ha, which is 35% lower than the corresponding indicator of the previous year.

Wheat exchanges in the United States traded sluggishly yesterday in anticipation of the updated USDA report.

• At the same time, on matif in Paris, September wheat futures rose by another €2/ton yesterday to €236.5/ton or.277.77/ton, and December - to €239.75/ton or. 281.58/ton.

Black Sea wheat futures in Chicago rose again yesterday:

• August-by 1 1 / ton to 2 269.75 / ton,
• September-by 0 0.25 / ton to 2 291 / ton,
• December-by 2 2.25/ton to 3 304.25 / ton.

Presumably, the market will react to the new wheat balance sheet from the USDA with a slight drop in prices, since speculative growth in recent weeks has been too strong, and the market is now somewhat "overheated".