Russian and Ukrainian wheat traded lower as a fall in demand and lower prices in Chicago and Paris held sway on prices, market analysts reported. Wheat market reports also confirmed that Russian wheat export prices extended their fall to the fourth consecutive week while Ukrainian wheat export prices fell to five-month lows.
It would be recalled that Russia, the third highest wheat producer and one of the leading exporters of the commodity, imposed several export curbs on its main agricultural products in recent months and plans more of them to tame the country’s rising food inflation. As a result, wheat demands fell sharply as dealers shifted focus on other exporters.
Sovecon, a leading firm focused on the Black Sea agricultural markets research, said wheat prices fell by $21 to $253 a tonne. The Institute for Agricultural Market Studies (IKAR), also noted that Russian wheat with 12.5% protein loading from Black Sea ports for supply in April was at $257 a tonne free on board (FOB) at the end of last week, down $16 from the previous week.
On a positive note, weather conditions are expected to remain favourable for the 2021 crop this week with healthy precipitation in Russia’s south further boosting moisture reserves in this key wheat-producing region, Sovecon said.
Market analysts said the price drop in Ukrainian wheat is a result of limited demand from exporters and a global downward trend in the international market.
Asking prices for 12.5 per cent protein soft milling wheat in the sixth largest exporter was down $23 to $251-$256 per tonne as of March 30.
Frontpage September 9, 2019