The wheat market is concerned by the imposition of martial law in Ukraine

27.11.2018

The Conflict between Ukraine and Russia in the sea of Azov and the introduction in some regions of Ukraine, martial law was the main factor behind rising prices for wheat.

The Decision of the Verkhovna Rada on the introduction of martial law was made at night, so European exchanges do not have time to respond.

December futures on milling wheat in Paris rose 0.25 €/t to 199,5 €/t or 226,09 $/t

Traders expect the outcome of the tender in Algeria, which traditionally imports wheat from France, but in recent preference for cheaper Argentine grain.

On the background of news from Ukraine, the December wheat futures in Chicago rose 1.5%.

wheat Exports from the U.S. for the week decreased by half to 252,5 thousand tons, which is by 27.5% less than the corresponding indicator of last week. Total wheat exports this season at 14.5 per cent behind the previous year and accounted for 52% of the USDA forecast compared to 72% at the same date in 2017

the December wheat futures on US exchanges rose:

1.19 $/ton to 170,67 $/t for solid winter HRW wheat in Kansas city

1.01 $/t to 212,01 $/t on a firm spring HRS wheat in Minneapolis.

2.85 $/t to 186,47 $/t for SRW soft winter-wheat in Chicago

Prices on black sea wheat remain stable, although the escalation of the conflict may reinforce the devaluation of national currencies. Due to unpredictable future developments the dollar on the black market jumped to 28.5-28.8 per UAH/$, although the interbank market remained at the level 27,89 UAH/$.


GrainTrade

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