Slack demand dragged down Ukrainian and Russian wheat prices
Last Friday, Jan. 14, Ukrainian and Russian wheat prices continued to fall amid weak demand. Even Iran's purchase of Russian wheat and Algeria's purchase of Ukrainian wheat did not support prices, the Agritel consultancy writes.
As reported, on the local Ukrainian market, wheat prices also fell sharply, pressured by weakening hryvnia against the dollar, as tensions rose amid a possible military confrontation between Russia and Ukraine.
Learn more: TOP 14 Wheat Exporters From Ukraine in 10M 2021
Wheat continued to fall on Euronext in a context of insufficient export activity and another risk of seeing the French origin boycotted by Algeria in its latest tender.
"Nevertheless, export activity to Morocco seems to be sustained. Algeria would have bought about 600,000 t of optional origins. The origins selected could come from Argentina and the Black Sea basin, despite the good competitiveness of the French origin. Diplomatic relations remain a source of tension," the report reads.
The price of wheat in Chicago is falling due to the lack of competitiveness of US origins on the international scene.
The USDA in its January report left unaltered its projections for wheat production and export from Ukraine in 2021/22.
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. The Government also considers milling wheat export from the country. The decision is reported to be taken in January.