Ukrainian wheat, which is in big demand on the world market, started price increasing trend
In April, Ukraine has already exported 541,000 tons of wheat. Part of the products that could not be exported in March will be sent from Ukraine in April. Therefore, this month Ukrainian exporters can reach the export level of 3 million tons. This will happen due to the March contracts. Importers are ready to wait for the supply of wheat, the demand for which is growing.
It should be noted that the increase in demand for Ukrainian grain is supported by forecasts of a drop in wheat production in the EU and the USA.
Last season Ukraine exported a lot due to large stocks. This year they will not exceed 1 million tons, since the ports are working. At the same time, Ukrainian farmers had to reduce sown areas under wheat. The first estimates of the export potential of Ukrainian wheat in the new season have already been reduced by 3-4 million tons.
Although there was a drop in prices on the Ukrainian CPT market last week, the market is reviving now. Prices are returning to previous levels and will continue to rise. The price indications for Ukrainian wheat will increase by at least $2-3 per ton by the end of the week. According to different forecasts, purchasing prices for wheat on CPT basis by the end of the week will be about 175 USD per ton in Danube ports and 170 USD per ton in deep-water ports.
Demand for wheat is expected to continue to drive the wheat market upward.