Cereals are getting more expensive – analysts G.R. Agro
As of January 25, demand prices for Ukrainian wheat of the 2nd and 3rd CPT classes deep-water ports in dollar terms remained at the level of last Friday. In hryvnia equivalent, the demand prices for 2nd and 3rd class wheat CPT-port increased by UAH 100 and UAH 50, respectively, against the background of strengthening the dollar to UAH 28.4. As of January 25, six major Ukrainian Black Sea ports (Odessa, Black Sea, Mykolaiv, South, Kherson, and Olbia) have restricted cargo operations due to bad weather. Some support came from trading in Chicago, where traders were concerned about the development of winter wheat in the United States due to arid conditions. From the beginning of the season until January 21, Ukraine exported 16.6 million tons of wheat (68% of the WASDE forecast), which is 3.7 million tons more than last year at the same time. Algeria, despite plans to reduce grain imports in 2022 by ~ 25%, has announced another tender for a nominal 50 thousand tons of wheat, which will take place on January 26.
- Tensions between Ukraine and Russia continue to support wheat contracts in Europe and the United States. The EU agreed to import 77.8 thousand tons of wheat from Ukraine in February according to its tariff quota scheme, but left the annual quota at 852.6 thousand tons for 2022.
In the feed wheat export market, CPT demand prices remained at last Friday’s level.
- Further pricing will depend on neighboring markets and the level of demand.