The decrease in wheat quotations on world exchanges increases the pressure on prices in Ukraine

Wheat quotations on world exchanges continue to fall under the pressure of increased offers of the new crop, favorable weather conditions for sowing winter crops in the USA and a possible increase in the area of sowing at the expense of unsown corn in the spring due to the drought of the fields.

In Ukrainian ports of the Black Sea, the number of terminals resuming work is increasing. There are already 50 ships in the queue for loading, so international traders are stepping up purchases.

Prices are supported by the increase in the export of Ukrainian grain and the situation in the domestic market, where competition between traders and processors is intensifying against the backdrop of sales restraint by producers. However, worse than desired export rates from the Black Sea ports keep prices at a low level, which corresponds to the level of prices in the Danube ports.

Demand prices for food wheat for delivery to the ports of Odesa or Chornomorsk rose to UAH 7,400-7,600/t or $180-205/t, while feed wheat prices remained at UAH 6,400-6,800/t or $140-170/t .

Yesterday, wheat quotations on world exchanges fell:

• by 2.8% or $8/t to $293.3/t – September futures for soft winter SRW wheat in Chicago,
• by 1.6% or €5.75/t to €330.25/t or $331.65/t - September wheat futures on Paris Euronext.

September Black Sea wheat futures in Chicago accelerated last week's slide and fell 3.2%, or $10/t, to $314/t in two sessions, losing 9.2% for the week amid improved crop and export forecasts wheat from the Russian Federation

Farm Futures estimates that U.S. winter wheat acreage for the 2023 crop could rise 7.5% to 36.553 million acres, although total wheat acreage would increase only 3.9% to 48.842 million acres.

Drought in China's rice-growing areas could reduce rice yields, which would increase demand for wheat. Therefore, the results of harvesting in the country may soon support the market.