Ukraine wheat prices move up despite Turkey's weaker demand

24 November 2021, 12:15

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As of November 23, offers of Ukrainian 11.5% wheat FOB Berdyansk with delivery in the first half of December rose by 5 USD/t compared to Friday, November 19, to 327 USD/t, while 12.5% wheat price grew by 7 USD/t to USD 332, Refinitiv Agriculture writes with reference to Atria Brokers analysts.

Reportedly, exporters kept notifying that the purchase price on the CPT-port basis was rising.

According to analysts, Turkey's zero buying activity on 23 November was associated with the worst fall of the lira over the past three years to a historic low. In July-October 2021, Turkey was the third-largest importer of Ukrainian wheat, while during the corresponding period last year it ranked 13th. On November 25, the Turkish Grain Board (Toprak Mahsülleri Ofisi Genel Müdürlüğü, TMO) tender for the purchase of 385 thou. t of wheat is expected to be completed.

"The price of Ukrainian corn offers with delivery in December remained at the last Friday's level — 283 USD/t FOB Mykolaiv. On November 18, the Ukrainian Ministry of Agriculture reported 31.78 mln t of corn harvested on 4.4 mln ha, corresponding to 80% of the planned 5.5 mln ha," add the analysts.

It is noted that the average yield improved to 7.2 t/ha from the previous week's 7 t/ha. On the same date last year, 86% of corn was harvested in Ukraine.

Wheat production in Ukraine in 2021/22 reached 32.3 mln t using the average yield of 4.62 t/ha. Wheat export from Ukraine in 2021/22 is limited to 25.3 mln t. The Memorandum of Understanding was signed by the Agrarian Ministry and grain market participants.

ARIA Commodities supplied 30,000 t of food wheat to Turkey and 33,000 t of corn to South Korea.

CFG is also working on boosting its shipment of milling wheat to Saudi Arabia. The company's latest shipment totalled 121 thou. t.