Purchase prices for wheat in Ukraine resumed growth

Purchase prices for wheat in Ukraine, after a slight decline due to a reduction in export demand, have resumed growth since Friday, following an increase in quotations on world stock exchanges.

The main speculative driver of price growth remains uncertainty with the wheat harvest in Canada.

Purchase prices for food wheat in the ports of Ukraine increased by 5 5/ton to 2 270-275/ton or UAH 8300-8400/ton. however, producers have reduced sales of wheat, and mainly sell rapeseed, and with the beginning of sunflower harvesting, they will actively sell it, taking advantage of the high price level. The growth of the dollar exchange rate against the hryvnia also contributes to an increase in purchase prices.

During August 23-27, Ukraine exported 482 thousand tons of wheat, which is 57% lower than in the previous week. Total wheat exports in the current season are 13% lower than last year's pace and amount to 3.4 million tons.

Wheat prices on world stock exchanges and in Ukraine will receive a boost today from the official forecast of the Statistical Office of Canada for wheat production and export, as well as the results of the GASC tender in Egypt. As a result of the drought that continued in the country since spring, the Ministry of Agriculture of Canada reduced its forecast for wheat production in the country to 20.18 million tons (including soft 16.35 million tons and hard 3.83 million tons) compared to last year's 35.19 million tons. wheat exports from the country for the period August 9-15 decreased by 9.6% compared to the previous week to 376.2 thousand tons, and in general in the 2021/22 season (from August 1) amounted to 792.2 thousand tons, which is by 15.5% is lower than last year'S pace.

Black Sea wheat futures rose on the Chicago Stock Exchange on Friday:

• September-by 2 2.25 / ton to 3 300 / ton,
• December-by 0 0.75 / ton to 3 311.75 / ton.

On the US stock exchanges on Friday, wheat quotes fell as traders recorded profits after a sharp jump in prices on Thursday.

September US futures fell:

• by 2 2.48 / ton to Чикаго 264/ton for soft winter SRW wheat in Chicago,
• by 1 1.19/ton to.261.7 / ton for hard winter HRW wheat in Kansas City.

Hard spring HRS wheat rose in price by 2 2.75/ton to 3 343.9/ton in Minneapolis.

European wheat fell in price after American wheat.

• September European wheat futures fell 1 € / ton to 250 €/ton or 2 295/ton.