Grain prices stabilize in Ukraine in pursuit of balance
Wheat and corn prices have ceased their fall as global markets are recovering from the panic following the news of the new coronavirus variant, Omicron, Barva Invest reports.
March U.S. wheat futures rose by USD 0.03 per bushel, the price of European wheat rose by EUR 1.75 per ton, and the Black Sea wheat dropped by another USD 1.5 per ton.
"After the prices slid on commodity exchanges, there is an increased interest from importers. Saudi Arabia called a tender for the purchase of 535 thou. t of wheat, Tunisia expects to buy up to 175 thou. t, Japan will buy 55 thou. t of American wheat, and Jordan will hold a tender for 120 thou. t. Prices in the Ukrainian market have stabilized," the message reads.
Barva Invest analysts stressed that weather models suggest a decrease in rainfall in Australia, yet rains remain in the forecasts.
March U.S. corn futures were up USD 0.04 a bushel and the Black Sea corn up USD 0.75 a ton. The U.S. reported the sale of 150,000 t of corn to Colombia. Stock players, according to the latest CFTC(The Commodity Futures Trading Commission) report, have the maximum of net long positions since 2010.
"The Ukrainian market is in search of a price balance after a reduction in supply from producers brought about by the price slump early in the week," analysts comment.
Previously reported that Egypt's GASC made a sizable wheat purchase in the latest tender. The country's state grain buyer booked Romanian, Russian and Ukrainian wheat.
Since the start of 2021/22, staple grains export from Ukraine has increased by 17.6% to 24.19 mln t.
