New crop grain delivery to Ukrainian ports higher from last year's
Risoil terminal in the seaport of Chernomorsk (Odesa region) has been receiving wheat since the end of June 2019.
"Hot and dry weather allowed grain harvesting to start earlier, which increased the rate of grain delivery to ports compared to previous years. Based on the current state of sowing and harvesting, provided there are no severe weather events next month, we can expect food wheat to be in the amount of up to 70% of the total volume. The rest will be fodder or unclassed," the company notes.
The price spread between classes will be narrowed due to an oversupply of quality wheat and a lack of forage wheat, as there is strong demand in the Asian market, the message says.
The main markets for Ukrainian wheat (fodder and wheat with 10.5-11.5% of protein content) will traditionally be Asia (Indonesia, Bangladesh, Thailand) and Africa/Middle East (Egypt, Libya, Tunisia, Israel). Due to a large amount of wheat with 12.5% protein content in Ukraine, more intense competition with Russian exporters for the markets of such wheat (Turkey, Egypt) is expected.
"Buyers are trying to postpone purchases with delivery in July/August to wait for crop pressure and seasonal price declines," the company stresses.
In the current season, wheat production in Ukraine should reach 28.8 Mt in using an average yield of 4.36 t/ha vs 3.82 t/ha last year.