Forward sales of new harvest wheat have intensified in Ukraine

The Ukrainian market has revived trade in new crop wheat amid the activation of stock market sentiment. Individual deals are already being fixed at around $225/t for wheat with 11.5% protein and $218/t for fodder with delivery CPT port of Greater Odessa. This is reported by Spike Brokers.

According to market data, individual farmers and agricultural holdings have begun to more actively conclude forward contracts, using current prices to fix future sales.

At the same time, the physical wheat market remains stable and operates mainly in the mode of execution of previously concluded contracts. Prices are practically unchanged: food wheat 11.5% is traded at $220–222/t, fodder wheat — $213–215/t.

Exports in March amounted to about 388 thousand tons, with deliveries concentrated on the markets of North Africa and the Middle East. In particular, about 40% of the volumes fall on Algeria, with significant consignments also shipped to Egypt, Israel and Tunisia.

Analysts say that the market works differently: exchange prices react quickly to world events, while the physical market changes more slowly and depends on tenders and competition.

Tags: Ukraine, prices, wheat