Black Sea wheat prices remain high in the world market
Export quotations for Black Sea wheat in deep sea ports (FOB) remain at a high level — USD 207-211 per ton, Refinitiv Agriculture reports.
"Market operators note increased competition in the market in anticipation of new crop wheat offers from Argentina. This is combined with a still significant export potential of the EU countries," analysts comment.
High Russian wheat offer prices raise traders' concerns about its competitiveness at present.
"Ukrainian exporters note the demand for wheat from different buyers but describe it as unsteady. Demand for wheat in Ukraine remains high due to increased liquidity after the growth of the price on a FOB basis. Despite the mass inflow of corn to the market, traders are more actively interested in wheat against the background of more attractive prices for it," the report says.
Prices on Russian CPT basis remained high, however, large exporting companies have recently started reducing purchase prices. According to traders, exporters overpay producers for the whole season. Experts note that the supply prices are remote from world prices. Exporters cover the concluded contracts with expensive grain and hope for some price reduction and increase of supply volume in November and early December.
As a reminder, on October 30, December corn futures in Chicago climbed 2.3% up to USD 153.77 per ton on the back of rainfall in the corn belt delaying harvest campaign. The price is supported by the growth in ethanol production and the expectation that physical market demand will pick up after a sharp rise in wheat price.