Main problem in the Ukrainian wheat market now is the almost complete lack of active demand from importers

The wheat market remained under pressure last week, prices were falling. This is reported by White Brokers.

On DAP-port terms, prices were at the following levels:

• food wheat — $213/t,
• grade 3 wheat — $219/t,
• grade 2 wheat — $222/t.

“The key problem of the market is the almost complete absence of active demand from external buyers. Ukrainian wheat is currently losing its competitiveness due to the aggressive pricing policy of Russian exporters, who are actively increasing supply on traditional routes for Ukraine,” brokers note.

In the FOB/CIF segment, trading activity is minimal — deals were concluded individually or not concluded at all. The market is characterized by a significant gap between the expectations of sellers and buyers, which is about $3-4/t.

In the face of weak demand, sellers are forced to either revise their price targets or postpone sales in anticipation of an improvement in the market. At the same time, the lack of support from external markets and high competition limit the potential for price recovery in the near future, brokers added.

Tags: wheat, Ukraine, export, prices