Wheat prices in the Black Sea region remain stable despite rising stock market quotes

Market support was provided by speculative funds, which became more active against the background of growing geopolitical tensions in the Middle East.

Wheat futures on the MATIF exchange added about €6–7/t for the week, but the physical market in the Black Sea region is reacting restrainedly. Prices on the CPT Odesa basis have hardly changed, analysts at Spike Brokers write.

Thus, the May contract rose to approximately €208–209 per ton. At the same time, the physical market in the Black Sea region remains relatively inertial. Wheat 11.5% protein on the CPT Odesa basis rose to $218/t (+ $1/t), and feed wheat fell to $210/t (– $1/t).

Since the beginning of the marketing year, Ukraine has exported 8.9 million tons of wheat, which is significantly less than in the same period last season, when deliveries amounted to 11.6 million tons.

In February, Ukrainian wheat exports were highly concentrated on the markets of North Africa and the Middle East. The largest buyers were:

• Algeria — 229 thousand tons;

• Egypt — 186 thousand tons;

• Yemen — 69 thousand tons;

• Saudi Arabia — 66 thousand tons;

• Italy — 34 thousand tons.

Despite the growth of stock quotes, competition on the global physical market remains high. This situation creates favorable conditions for the use of stock hedging instruments, as the potential for physical price growth is limited by significant export volumes from Russia and the active offer of other suppliers in the Black Sea region.

As USM reported the day before, freight rates are increasing against the backdrop of a rapid increase in fuel prices.