Wheat prices in Ukraine hit highest since 2013: Agritel
Wheat prices in Ukraine are dealing at their highest since 2013, following the rise of international prices, the Agritel consultancy reports. As reported, corn prices in Ukraine are also experiencing a further increase due to logistical problems.
"The Black Sea region is in the news at the moment with Russian talk of possible new measures to curb grain price inflation, either by imposing new taxes or by introducing export quotas early next year, or a combination of the two," the report reads.
Analysts market that cereals markets were soaring after Russian comments suggesting new restrictive export measures in the event of a further rise in world prices.
"Although rumours of the introduction of quotas were already circulating in the market, this only confirms the tension of the supply and demand (S&D) balances, particularly for wheat. On top of that, there are quality concerns about the future Australian crop with heavy rainfall near the end of the cycle. These elements are adding to the bullish USDA report of Tuesday," Agritel analysts comment.
The last positive element this morning, mainly for Euronext, as Agritel notes, is the strength of the dollar against the euro, making European origins more competitive on the international scene.
Corn prices are rising in the wake of wheat, but to a lesser extent. The price differential between wheat and corn remains very high, encouraging livestock feed manufacturers to incorporate more corn into their formulations. In Brazil, favourable weather conditions are prompting the Conab to forecast the country's next production at 116.7 mln t.
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.
Wheat export from Ukraine in 2021/22 is projected by the USDA in its November report at 24 mln t, 0.5 mln t above the previous report. Corn outlook for Ukraine was left unchanged by the USDA analysts, exports should reach 31.5 mln t in 2021/22.
The export shipment of wheat from Ukraine has come to 12.9 mln t since the start of 2021/22.