Black Sea region operators upped wheat forward prices — Agritel
Despite the rally recorded on Monday on the different wheat contracts on Euronext, the main exporters in the Black Sea region have hardly revised their forward prices upward for the 2020/21 campaign, Agritel writes.
"In fact, during the recovery following the Easter break, the prices marked a slight upward revision of +1/2 $/t depending on the operators. Thus, the CPT Odesa price for harvest delivery is still displayed below 180 $/t," the report reads.
This situation highlights the lack of visibility on the next harvest. Traders are particularly concerned about the risk of default, in a context where the yield potential in the area is seriously questioned due to the still dry conditions, the consultancy adds.
In the week of Apr. 11-17, grain export shipment in Ukrainian sea ports reached 992 thou. t. Wheat shipment in the reporting period increased by 47% to 319 thou. t vs. the prior week's 217 thou. t.
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.
