Demand prices for Ukrainian wheat weaken, corn and barley prices follow downward
As of February 3, the demand prices for Ukrainian food wheat category 2 and 3 in the dollar equivalent remained at the level of Tuesday — USD 308 and USD 307 a ton CPT deepwater ports. In UAH equivalent, the decrease amounted to UAH 250, G.R. Agro analysts report.
"Wheat prices are going down following the declining prices on global markets, coupled with the political conflict between Russia and Ukraine easing, and low demand. On February 2, Tunisia bought 100 thou. t of wheat: 50 thou. t from Casillo at USD 348.69 a ton and USD 350.69 a ton, 25 thou. t from Cargill (USD 350.64) and 25 thou. t from Lecureur (USD 350.77)," inform the analysts.
According to experts' forecasts, the demand from importers will adjust the prices. The development of prices will also depend on Russia's policy on the export tax after February 15.
Learn more: TOP 14 Wheat Exporters From Ukraine in 10M 2021
In the feed wheat export market, according to analysts, there is a downward trend in CPT demand prices in deepwater ports in the context of price formation in the neighbouring markets. G.R. Agro analysts project that further pricing will depend on the neighbouring markets and demand patterns.
Demand prices for feed corn in dollar equivalent decreased by USD 1 a ton compared to Tuesday levels, to USD 271/t CPT deepwater ports on the back of lower consumption. In addition, negative signals came from Chicago, where quotations were under pressure as US stocks of ethanol rose and China's cancellation of its purchase of 380,000 t of US corn for delivery in 2021/22.
"Numerous offers of Ukrainian corn could push up CPT prices. The announcement of a tender by the Turkish TMO for 325,000 t of corn, due on February 8 for February 25-March 5 delivery period, could prevent price reductions," the report reads.
The prices for feed barley CPT deepwater ports in Ukraine decreased by USD 6 a ton vs. Tuesday to USD 272. On February 2, Tunisia bought 100 thou. t of barley from Aston at USD 342 a ton, Casillo (USD 332.69) and Cargill (USD 339.70). Jordan cancelled its tender for 120,000 t of barley. A new tender is expected on February 8.
Analysts expect a limited number of offers to reduce prices.
Previously reported that corn export prices rose 3.8% mth/mth in January. Wheat, on the contrary, was down 3.1%.
As of February 2, wheat export from Ukraine made up 17.08 mln t, corn 15.6 mln t, 30% and 32% up YoY.
