In Ukraine, export prices for grain collapsed, following stock market quotations
Yesterday the USA celebrated Presidents’ Day, so the exchanges were closed, while on the European platforms wheat and corn futures continued to fall in price and fell to a 2.5-year low under the pressure of significant stocks in the EU and cheap grain supplies from Ukraine and the Russian Federation.
Experts from the French Agritel believe that the competition between the Black Sea countries and Western Europe has reached its peak, and the increase in wheat stocks in the EU forces sellers to look for new sales markets.
According to the FranceAgriMer agency, stocks of soft wheat in France in the current season have reached a 19-year high.
Yesterday at the Paris MATIF, March flour wheat futures fell another 1.5% to €200.25/t or $215.6/t (-5.2% since the beginning of February), and corn – by 1% to €171/t or $184.2/t (-5.7%).
Following stock market quotations and under the pressure of falling demand prices in Asia, export demand prices in Ukraine also decreased. Purchase prices for fodder wheat fell by $5-8/t to $140-145/t or UAH 5800-6100/t, for food – to $165-175/t or UAH 6800-7400/t, for corn – to $2-5/t to $140/t or UAH 5,800-5,900/t with delivery to Black Sea ports.
Traders attributed the decline in prices to a reduction in demand from buyers in Asia, where demand prices fell by $10-15/t last week amid a long New Year’s weekend.
Due to the decrease in prices, farmers almost stopped selling grain and intensified the sale of soybeans and sunflowers, the prices of which are also falling, but the demand from processors remains quite high.
Demand prices for food wheat from processors fell to UAH 6,200-7,000/t with delivery to the mill, while preference is given to grain with 12.5% protein.
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