Wheat prices remain unchanged for the third week in a row on the CPT Odesa basis

Wheat prices on the CPT Odesa basis have remained unchanged for the third week in a row amid low market activity and moderate purchasing activity of traders and processors. This is reported by Spike Brokers.

Food wheat with 11.5% protein is traded at $210/t CPT, feed wheat – $205/t CPT.

“Purchasing activity of traders is moderate, and processors in the central and western regions of the country have already secured themselves for February and March. Trading is concentrated mainly around feed lots, which is confirmed by a significant narrowing of the spread between feed and food wheat,” the brokers note.

At the same time, Russian wheat continues to put pressure on international markets: its FOB prices remain $5-8 lower than Ukrainian ones, which allows Russia to win tenders in the MENA region.

“The Ukrainian product is being squeezed out of the main purchases, and the demand for it is fragmented,” Spike Brokers adds.

There is no steady demand for feed wheat due to competition with cheaper corn on the feed market. Processors are holding back purchases and are focusing on short-term contracts and local deliveries.

From January 1 to 29, Ukraine exported 498.5 thousand tons of wheat. The main destinations were Algeria (174.4 thousand tons), Egypt (140.9 thousand tons), Portugal (66.0 thousand tons), Yemen (58.8 thousand tons), Tunisia (30.4 thousand tons), Spain (28.6 thousand tons) and Greece (17.4 thousand tons). At the same time, the European direction remains weak.

Tags: Ukraine, prices, wheat