Ukrainian grain market is on the rise: wheat price may reach 230 USD/t

The Ukrainian wheat market is showing steady price growth. The main factors affecting the price dynamics are lower yields in Europe and Australia, high demand from Asian importers and limited supply of grain on world markets. This was reported by analysts of the agricultural cooperative PUSK, established within the VAR. They predict that this trend will continue at least until the end of October.

“Amid climate problems and lower harvests in the European Union, Ukrainian wheat is becoming more competitive, especially for Asian countries. At present, the conditional price in ports is approaching 210 USD/t, and there is a potential for growth up to 220 USD/t,” said the analysts of the PUSK. Another important factor behind the price growth is the high export rates of Ukrainian wheat.

“Exports from Ukraine have already reached 900 thsd tons, which indicates stable demand. The market is running on wheels, without significant accumulations in ports, which maintains price stability,” the PUSK explains. In addition, prices are supported by news from the Russian market. “Russian exporters have agreed on the minimum price for their wheat at $250/t, which gives the Ukrainian market opportunities to strengthen its position as Asian importers are looking for alternatives in the face of shortages,” the experts believe.

The price of milling wheat is also growing on the domestic market of Ukraine. “The price of 2nd class wheat is already above 9700 UAH/t, which makes the domestic market more attractive for sales. The limited supply of grain will stimulate further price growth. It is expected that this trend will continue until December-January, when prices in ports may reach 230 USD/t,” predicted the analysts of PUSK.

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Tags: Ukraine, prices, wheat