Feed wheat prices
Last week, feed wheat purchase prices in Ukraine fell by $2-4/tonne to $150-155/tonne with delivery to Black Sea ports, but hryvnia prices remained at 6,400-6,500 UAH/tonne due to limited economic conditions. are supplied by manufacturers.
Food wheat prices
Processors reduced the prices of 3-grade wheat by 200-300 UAH/t to 6,300-6,500 UAH/t for delivery to the mill, while the prices of high-quality food wheat with 12.5% protein remained at 7,000-7,300 UAH/t.
Ukraine’s competition gets tougher
The fall in world prices had the greatest impact on Ukrainian food wheat prices, which struggled to compete with high quality Russian and European grains. Export quotations fell by $5-7/t to $170-175/t or UAH 6,950-7,400/t with delivery to ports.
Recent situation on the wheat storage market
Against a backdrop of significant supply and low demand, world quotations fell 0.5-0.7% this week and 1.2-1.8% yesterday.
March wheat futures were lower yesterday:
- SRW soft winter wheat at Chicago was down 1.6% at $216.9/t (-0.7% for the week),
- HRW at Kansas City rose 1.8% to $225.6/t (-0.7% for the week) for hard winter wheat.
- HRS hard spring wheat in Minneapolis was up 1.3% to $253.9/t (-0.3%).
- Wheat rose 1.5% to €213.75/t or $227/t on Paris Euronext (-0.5%).
USDA report
Favourable weather conditions for the northern hemisphere winter wheat crop are also adding to supply pressure.
According to the USDA, US wheat exports from 26 January to 1 February fell by 6.7% week-on-week to 266.2 thousand tonnes, bringing the season’s total to 11.27 million tonnes, down 22.4% year-on-year. (13.8 million tonnes). Analysts do not expect any significant changes in the new USDA report due on 8th February, so the soybean and corn balances may support wheat prices.
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