Algeria and Indonesia are actively buying Ukrainian wheat

The wheat complex on the CBOT showed the strongest dynamics among cereals. After several weeks of decline, the market began to recover against the background of increased international demand. Purchases from Algeria, Jordan, Bangladesh and Asian countries returned interest to the market on the eve of the start of the new season. This was reported by analysts at Spike Brokers.

Additional support was provided by weather risks in Europe. Hot and dry weather in France and parts of Central Europe increased concerns about the potential harvest, which allowed European and American exchanges to move away from local minimums.

Despite the improvement in sentiment on exchanges, the global balance remains sufficiently secured. The harvest of winter wheat in the USA is gaining momentum, while Russia maintains a high export potential for the new season, which hinders the formation of a sustainable upward trend.

The physical market in the Black Sea region remains restrained. SPIKE Spot Index CPT Odesa for food wheat fell to $217, and for feed wheat to $212. The price of food wheat of the old and new harvests has already equalized, while the price of feed wheat still maintains a significant difference between the old harvest at $212 and $208 – new harvest.

In the first half of June, wheat exports amounted to 668 thousand tons. The main demand continues to be formed by the countries of North Africa and Southeast Asia, and the share of Algeria and Indonesia remains decisive for Ukrainian shipments at the end of the season.

Tags: Ukraine, export, Indonesia, wheat, Algeria