Demand for Ukrainian wheat will grow in the near future

Ukrainian wheat exports in December were low, which is primarily due to high military risks and disruptions in port infrastructure. However, the situation may change due to the activation of importers and negative weather conditions in the Black Sea region. This is reported by the analytical department of the agricultural cooperative PUSK, created within the VAR.

“December was marked by security risks, so the physical volumes of wheat exports were objectively low. At the same time, the influence of weather factors is increasing on the market, which can support quotes. In the US, local problems with moisture supply are being recorded in the wheat belt, which is already causing concern about the potential of the new crop. In addition, we have difficult weather conditions in the Black Sea region – frosts without snow cover, flooding with subsequent freezing of the soil. This combination of factors may gradually push the world wheat market up,” analysts explain.

An additional driver is the recovery of import demand, as key buyers begin to return to the market after a pause in purchases. “Egypt last actively purchased wheat in late November – early December, and now needs to replenish stocks.

The market is gradually becoming more active, importers need to resume purchases, so in the coming weeks we can expect demand to grow,” the PUSK noted. As of January 13, conditional prices for wheat with a protein content of 11.5% on a CPT-port basis are $ 213-214 / t.

Tags: Ukraine, export, wheat