Black Sea wheat prices lower on delayed new harvest supply
A decrease was observed in the Black Sea wheat export quotations for the new harvest on the FOB basis deepwater ports for July(the first month of 2020/21) shipment, Refinitiv Agriculture writes.
At the same time, supply prices remain high amid weak producers' sales and low carryovers.
"The 10-days postponement of the start of grain harvesting in the countries of the Black Sea region than it was previously expected, still supported the prices for July deliveries of wheat," analysts report.
Market operators expect a delay in the first deliveries of new crop grain to ports for export shipment. Wheat deliveries from the Black Sea region in August-September are estimated at 2-4 USD/t lower from July.
"The traditional pressure exerted by the new harvest has shifted to August," a Ukrainian trader noted.
Other traders also report that many importers have taken a wait-and-see position in anticipation of a new crop and lower supply prices.
The Ministry for Development of Economy, Trade and Agriculture of Ukraine is estimating the grain harvest 2020 at over 68 mln t vs. the previously announced forecast of 65-68 mln t.
The Memorandum of Understanding between the Ministry of the Development of Economy, Trade and Agriculture of Ukraine and grain market participants will be signed on July 1 to ensure the projected grain export volume in the 2020/21 season.
