Ukraine wheat and corn follow upward global price trend
For the fifth straight week, Ukrainian wheat and corn prices have continued to strengthen, following the world trend, the Atria Brokers analysts observe, Refinitiv Agriculture reports.
As of 2 November, offers of 11.5% Ukrainian wheat FOB Mykolaiv for November loading period revised upward by 8 USD/t against Friday 29 October to 320 USD/t for spot delivery, and 325 USD/t for the second half of November loading period. At the same time, on the morning of November 2, 11.5% wheat was still offered at 313 USD/t spot, and for the second half of November shipment — about 319 USD/t.
"As a new factor, on 1 November the Chinese government urged its citizens to stockpile basic commodities and regional authorities to ensure the population has sufficient food supplies for winter and next spring in case of an emergency. Recent tenders held by Saudi Arabia, which purchased twice as much as planned, along with two consecutive tenders by the GASC, are also warming the market," analysts say.
Atria Brokers' experts mark that corn offer prices for the second half of November loading period strengthened by 7 USD/t vs. Friday to about 285 USD/t FOB Mykolaiv.
Since the start of 2021/22, grain export shipment from Ukraine has made up 19.4 mln t, 17.3% up YoY.
As a reminder, wheat export from Ukraine in 2021/22 was limited to 25.3 mln t. The Memorandum of Understanding was signed by the Agrarian Ministry and grain market participants.