Black Sea wheat market. Bearish trends prevailed last week

18.05.2018

RUSSIA. Last week, the upward trend in Russian wheat prices gave place to their downturn. Export prices for Russian wheat with 12.5% protein closed the week down on average $1-2/MT at $212-215/MT FOB, while those for 11.5% protein wheat and feed wheat were down at $204-207/MT FOB and $200-202/MT, respectively, FOB Novorossiysk port for May-June delivery, reports UkrAgroConsult.

Black Sea wheat was pressured by a substantial price fall in the global market. In addition, importers are already switching their focus to new-crop wheat, stopping to sign contracts for the old crop.

It is worth noting that forward prices for Russian new-crop wheat (12.5% protein) are now at a four-year high.

UKRAINE. Bearish price trends prevailed in Ukrainian grain markets last week. Grain prices were pressured by the world market trends. In the short term, new crop prospects will determine old-crop grain prices.

Export prices for Ukrainian milling wheat (11.5% protein) closed the week down on average USD 1-2/MT, while the prices for 12.5% protein wheat remained unchanged.

Some price fluctuation was seen in the domestic wheat market during the week, determined mainly by the national currency behavior. At the beginning of the week, wheat prices were supported by hryvnia weakening. However, at the end of the week, some traders lowered their purchase prices. Nevertheless, domestic prices for wheat closed the week up on average UAH 25-50/MT (mainly milling wheat), due to a limited supply in the market.

UkrAgroConsult notes that Ukraine and Russia together shipped to foreign markets more than 80 MMT of grain since the beginning of the season, including about 50 MMT of wheat.

Information on price behavior on grain market in the countries of Black Sea region is available to subscribers of "Black Sea Grain" by UkrAgroConsult.

 

UkrAgroConsult

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