Further dynamics of wheat prices in Ukraine will depend on the pace of the harvest

Wheat purchase prices at Ukrainian ports fell another $1 in a week, and the market is gradually shifting to the new crop, according to analysts at Spike Brokers.

According to brokers, the US wheat market has stabilized in a narrow range. The reduction in sown areas has supported prices, but active harvesting limits their further growth.

In Europe, traders’ attention is focused on the weather situation. A heat wave has worsened the condition of crops in France, but the first harvest results in the Black Sea region and high harvest expectations in Romania and Ukraine do not allow buyers to form a stable weather premium. As a result, Euronext ended the week practically unchanged.

In the Ukrainian physical market, activity is increasingly shifting to the new crop. Purchase prices at ports have completely unloaded before the start of the new season and lost another $1 in a week, which indicates a gradual slowdown in the correction after a sharp decline in late June.

Thus, food wheat was traded at $207/t, and feed wheat at $197/t.

“Further dynamics of domestic prices will largely depend on the pace of arrival of the new crop and export activity at the start of the marketing season,” the brokers added.

Tags: Ukraine, prices, wheat, harvesting