Last week there was a further decline in indicative prices for Ukrainian wheat delivered to the Black Sea ports. The prices are under the pressure of both domestic conditions and very restrained demand.
A further decline in import demand is due to both seasonal factors and a large number of risks when buying Ukrainian products. In addition to the unstable operation of the “grain corridor”, uncertainty about the period of its validity and the approaching deadline imposed by Russia, the Russian side interfered in the formation of the queue for passing inspections. And even more, Russia threats to terminate the agreement due to non-fulfillment of its conditions.
At the same time, most importers have formed stocks, which will last for a certain period. And they will wait for even more attractive prices as the start of the new season approaches. In turn, many exporting countries have fairly large stocks of grain and good prospects for production in the 2023/24 season, which increases competition in the global arena. Strong competition in the main areas of sales of Ukrainian wheat continued to be Russian grain. So its further reduction in price increased pressure on the Ukrainian one.
Last week, indicative offer prices for milling wheat and feed wheat fell to 240-250 and 230-240 USD/t FCA, respectively.