Feed wheat prices in Danube ports fell to $130 per ton

Farmers are holding back sales, hoping for the Black Sea to be unblocked following the results of trilateral negotiations.

Purchase prices for feed wheat in Ukrainian Danube ports have decreased by another $6–10 per ton and as of November 4 are $130–140 on CPT-port terms. This is reported by APK-Inform IA.

“The main reasons for the decline in the cost of this crop are extremely low export demand, limited liquidity, and a drop in world stock market quotes for wheat. The use of alternative routes guarantees importers sufficient supply, forcing them to lower demand prices. At the same time, producers themselves are temporarily holding back sales, expecting more favorable market conditions,” analysts note.

The decline continues for the second month in a row. In September, feed in Danube ports cost $146–155 per ton, on October 28 — $137–150. That is, during this time the crop lost about $16–20.

Additional pressure is created by geopolitical expectations. A week ago, analysts directly indicated that the prospects for the resumption of exports from the Black Sea and trilateral negotiations limit the activity of buyers. World wheat quotes fell to their lowest since July after Russia’s statements about the possible resumption of safe grain transportation.

Meanwhile, the gap with food wheat has widened. Grade 2 grain in the same ports is traded at $165–176 per ton, grade 3 — $161–174. The spread with feed reaches $30–35, while in September it was $21–23.

The day before, USM wrote that Ukraine under-exported rapeseed in October due to logistics problems.