Wheat prices in ports soared — traders

Export quotations for Black Sea wheat demonstrated a sizable increase last week, adding from 14 to 20 USD/t FOB in deepwater ports of the region, depending on the grain class, Refinitiv Agriculture writes.

"The intensification of external demand and concerns about the restriction of grain exports from Russia by the end of this season were the basis for the rapid recovery of quotations," said the analysts.

According to their data, export quotations for Russian 12.5% protein wheat recovered to a 2-month high, while the offer prices rushed to 230 USD/t FOB.

Market operators expect that the planned quota for grain exports from Russia is unlikely to significantly limit shipments, but it has already supported the quotations at a high level.

Export quotations for Ukrainian 11.5% protein wheat FOB Odesa have also risen in line with Russian grain. Offer prices for Ukrainian wheat exceeded 220 USD/t.

"Wheat prices have simply exploded," the traders say.

As a reminder, the Ministry for Development of Economy, Trade and Agriculture of Ukraine and grain traders signed a document which provides for a limit of wheat export from Ukraine in 2019/20, i.e. until June 30, 2020, at 20.2 mln t.