Importers are trying to postpone wheat purchases

Euronext Milling Wheat Futures quotes remained in the range of €203-212 during the week, with the movement of the wheat market largely shaped by the activity of financial funds, which continue to increase long positions.

This is reported by analysts at Spike Brokers.

Wheat prices are supported by geopolitical risks and rising energy prices, which increase production costs and form a premium in grain markets.

On the physical Black Sea market, quotes also show moderate growth. Russian wheat 12.5% ​​is offered at around $239-240 FOB, while Ukrainian 11.5% is offered at around $237-238 FOB. At the same time, buyer activity remains limited: importers are trying to postpone purchases due to rising freight rates and general uncertainty in energy markets.

According to the SPIKE Spot Commodity Index, export prices in Ukraine showed a slight increase during the week. On a CPT Odesa basis, wheat increased by 11.5% from $218 to $219, while feed wheat increased from $210 to $214, reflecting moderate support from the physical market against the backdrop of limited supply.

Ukrainian wheat exports in the period 1-12 March amounted to about 232.9 thousand tons. The main buyers were Algeria (93 thousand tons), Egypt (69 thousand tons) and Israel (31 thousand tons), confirming that the main demand from the countries of North Africa and the Middle East remains.

At the same time, the pace of shipments remains below the potential export opportunities. At the current pace of deliveries, March exports may amount to only about 600 thousand tons, which increases the likelihood of the formation of larger transitional stocks of wheat in the Black Sea region at the end of the season.

Tags: Ukraine, Egypt, export, prices, wheat, Israel, Algeria