Wheat prices in Ukraine small ports seen dropping: Refinitiv

As of February 22, Ukrainian wheat offers with a protein content of 11.5% and 12.5% FOB Berdyansk for February-first half of March shipment were 281.25 USD/t and 283 USD/t, respectively, which is about USD 4 lower from Friday, February 18. Offers of 11.5% wheat FOB Mykolaiv remained at Friday's level of 310 USD/t, Refinitiv Agriculture reports.

Atria Brokers say that a new price bottom (close to a 5-month low) has been reached in small ports amid Russia's acceptance of Ukraine's occupied territories' independence on February 21. Importers are wary of buying grain, anxious about probable logistics issues.

Learn more: TOP 14 Wheat Exporters From Ukraine in 10M 2021

Market participants also assessed the impact of new sanctions imposed by the West on Russia. CBOT and Euronext sent upward signals on concerns over food security in light of escalating tensions between Russia and Ukraine, as well as dry weather conditions for winter wheat in the US.

Related: What if War Starts Tomorrow. Agriproducers, Port Operators and Traders on High Alert in Ukraine

Corn offer prices in Mykolaiv posted a second consecutive week of gains, rising this week to 289 USD/t FOB for March delivery, up 4 USD/t from Friday's offer for February delivery. On top of the geopolitical agenda, traders also remain watchful of the impact of weather conditions on the South American corn crop.

Related: From Field to Port: Corn. Production, Storage and Profitable Sale

As of February 21, wheat export from Ukraine totalled 17.5 mln t, 34% up YoY.

As a reminder, 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 was reported to be taken in January, but it has not happened yet.