Ukraine wheat prices resume upward backed by strong demand
Wheat prices on the Ukrainian market have resumed their upward trend, having received support from considerable demand on international markets, Barva Invest analysts inform.
December futures in Chicago rose by 0.12 USD/bu, the price of European wheat increased by 6.5 EUR/t, and Black Sea wheat added 2 USD/t.
At yesterday's tender, Egypt booked only 60 thous. t of Romanian wheat, and Turkey announced a new tender for the supply of 385 thou. t of milling wheat. And Iraq once again declares a deficit of 2 mln t of wheat in the current season. A 6% expansion in the wheat area is expected in Canada next season.
Reportedly, corn prices remain stable on the Ukrainian market.
World corn quotations were slightly higher after the rally on wheat and soybean markets. December contract for US corn was up by 0.04 USD/bu, and for Black Sea corn by 1.75 USD/t.
U.S. ethanol production has stabilized, but inventories keep declining, which could further support prices. Argentina's corn planting progress has reached 43% and the USDA expects next season's production to be 54.5 mln t.
Previously reported that Black Sea grain prices revised upward in response to possible export limits from Russia.
As of 10 November, grains export from Ukraine summed 20.98 mln t, having exceeded the previous year's levels by 19%. 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.