Traders are now trying to prove that the price of wheat and corn in Ukraine should be lower than it is now with speculation about the Red Sea crisis, world cargo growth and other global problems. This assumption was made by experts from the analytical center of the agricultural cooperative PUSK, created within the framework of the All-Ukrainian Agrarian Rada, the UAR press service reported on January 24.
As analysts noted, as of January 22, Ukraine has already exported more than 1 million tons of wheat since the beginning of the month. Traders have contracted a total of 1,5 million tons of wheat for January, and there are also quite active sales for February - already 1,3-1,4 million tons of wheat contracted. There are also smaller sales for March. At the same time, wheat stocks are at a sufficient level.
“In the importer market, the price tags are practically unchanged. The only buyer trying to buy relatively cheaply is Turkey. Spain and Italy have only reduced the price by $2. There is no major decline in export markets. In addition, dealers are trying to sell the Zusato propagate a collapse in the market due to problems in the Red Sea and rising freight costs. Most importantly, they try to buy cheaper feed wheat. However, there is no clear factor that would pull prices down,” said the experts.
They added that wheat in the Danube ports now costs $180-185 per ton (with the forecast of an increase in February), in the ports of Odessa – $184-189 per ton, on the border with Romania – $220-225 per ton.
The situation on the corn market is identical. For January, 3,2 million tons of grain were contracted, for February – 2,8 million tons, for March – 1 million tons.
“There was almost no drop in prices among importers. Egypt has purchased corn at a price of $215-220 per ton and continues to purchase at this price. Prices are also stable in Europe. Even the fact that our major exporters entered the port of Constanta last week and began selling large quantities of this crop has not significantly reduced prices. “However, the dealers are trying to reduce the price significantly here too,” say the experts.
By the end of January, corn will be sold in the Danube ports for $160-165 per ton, in the Odessa ports for $150-155 per ton.
“In February, prices for this crop are expected to rise,” analysts predict.
Source: APKinform (Ukraine)