The prices of wheat in the Ukraine market showed another decrease. It is the result of limited volumes of demand and further deterioration of the logistics situation on available export routes.
Chicago wheat futures edged higher, supported by a lower global production estimate in the USDA September report.
|December wheat contract on Euronext||€232/t (-2.25 €/t)|
|DAP-Port Danube (11.5%)||$160/t|
It should be remembered that in the report for September, USDA experts reduced the forecast of world wheat production to 787.4 million tons. At the same time, the forecast for Ukraine was increased from 21 to 22.5 million tons. Exports are also forecast to increase from 10.5 to 11 million tons.
As of now, Ukrainian farmers have to sell wheat in the Danube seaports with a loss of 50-60%. According to Ukrainian member of Parliament Dmytro Solomchuk, due to the Russian shelling, the cost of delivery and freight increased significantly. They already reached $80-90 per ton. And it is clear that the farmer still needs to deliver the grain to the ports. The logistics costs take a huge part of the farmer’s income.