Black Sea grain prices rose sharply responding to rising futures

The speedy increase of the futures market has pushed higher the export prices for all Black Sea region grain crops, Refinitiv Agriculture informs.

“The Black Sea wheat quotes followed the futures to USD 190-195 per ton for wheat with 12.5 per cent protein content on the FOB basis in deep-water ports, and for wheat with 11.5 per cent protein content — to USD 185-190 per ton. According to market operators, the demand for grain has increased, but the new price levels were rather unexpected for importers, especially against the background of favourable prospects for a new crop,” the report states.

Prices for Ukrainian corn (both old and new crops) has also gone up, despite the fairly large end stocks of grain.

“The futures growth has led to the strengthening of prices for corn from other exporting countries and increased interest in Ukrainian grain, yet sharply reduced the number of supply proposals on the spot. Ukrainian companies are switching to the new crop trade, including corn,” Refinitiv Agriculture notes.

According to the report, the ongoing US-China trade war and delays in US sowing campaign raise concerns that there may be a shortage of raw materials for the production of feed ingredients, which has intensified external demand for Ukrainian granulated sunflower meal and, accordingly, pushed prices up.

Last week, precipitation in the US corn belt not only paused planting but also slowed the germination of previously sown grain.