Prices for Ukrainian wheat are falling due to the threat of disruption of the Istanbul Agreements
25.10.2022 - 11:45
The threat of disruption of the Istanbul Agreements affects the decrease in the demand of importers and the price of Ukrainian wheat.
According to the results of last week, the indicative offer prices for wheat with delivery from deep-sea ports of Ukraine on FOB conditions decreased.
The price is affected by a decrease in demand from importers, according to AI “APK-Inform”.
Thus, the indicative prices of wheat with protein 12.5%, 11.5% and fodder for delivery in November from the Black Sea ports decreased by 5-10 USD/ton — to 305-325, 300-320 and 260-275 USD/ton FOB accordingly.
The grain corridor expires in November. Rumors are already spreading in the market that the agreement may not be extended. There is also tension due to russia’s desire to “relax restrictions” on the export of its grain and fertilizers. In addition, russia may terminate the agreement altogether, due to the UN investigation into the Iranian kamikaze drones, which the terrorist country uses to attack Ukraine.
Read also: The MFA is convinced that Russia is responsible for the delay of work of the “grain corridor”
As a result of fears and pessimistic forecasts, Ukrainian products were rarely offered at the last announced and conducted tenders. Even more rarely, Ukrainian grain won the auction, although it was usually the cheapest.
Most importers are already looking for a replacement for Black Sea products, precisely because of the expectation that the “grain corridor” will stop working. For example, importers from Asia have increased their purchases of Australian wheat, Anna Tanska, head of the department of grain and oil markets of IA “APK-Inform”, said.
