Wheat prices in Ukraine continue to rise amid the protracted war in Iran

Prices for Black Sea food wheat have increased by $6/t FOB since the start of the war in the Middle East, reaching their highest level since August last year, ASAP Agri reports.

 

Currently, prices for Ukrainian wheat with a protein content of 11.5% are $237/t FOB - Black Sea ports, and for Russian wheat with a protein content of 12.5% - $242-245/t FOB Novorossiysk.

 

In addition, freight rates have also increased due to the increase in the cost of bunker fuel. In particular, the cost of transporting heavy-duty cargo from Ukraine to the Eastern Mediterranean has increased by $5-6/t to $28/t.

 

Against this background, offers of Ukrainian wheat with a protein content of 11.5% for delivery to Egypt increased in price to $264/t CIF, which is $11/t higher than February prices.

During the week, export purchase prices for wheat in Ukraine increased by another 100-150 UAH/t to 10,800-11,000 UAH/t or 218-222 $/t for food wheat and by 50-100 UAH/t to 10,550-10,700 UAH/t or 210-212 $/t for feed wheat with delivery to Black Sea ports. This is due to the postponement of the implementation of some contracts for delivery to the Middle East and an increase in the cost of freight and insurance of ships.

 

Currently, more than 3,000 ships are waiting to pass through the Strait of Hormuz, which practically paralyzes world trade not only in oil and gas, but also in food. At the same time, Iran continues to export oil and import grain, which supports the existence of the regime.

 

After the start of the war with the US and Israel, Iran allowed a limited number of cargo ships carrying grain and other agricultural products to pass through the Strait of Hormuz in order to secure critical supplies.

According to a Financial Times analysis of maritime surveillance data, at least six ships unloaded at Iran’s Imam Khomeini port (a key commercial hub in the northern Persian Gulf) and then passed through the strait into Iranian territorial waters between March 15 and 16.

Five other ships that unloaded at the same port have since March 9 taken the strategic waterway via a different shipping lane to reach the Gulf of Oman, according to Kpler, a shipping analyst firm. Among them was the Giacometti, a Canadian soybean cargo ship that crossed the Strait of Hormuz on Friday to enter the Persian Gulf.

Almost all of the 11 ships are under Greek control, making them among the few Western-owned vessels to have passed through the strait since the war began on February 28.