Ukraine can set two wheat export records
28.10.2021 - 11:00
The number of countries to which Ukrainian wheat is supplied for more than $10,000 has grown from 32 to 50 in recent years. At the same time, more than 1,000 companies export Ukrainian wheat today.
Following the results of nine months, Ukraine exported 13.1 million tons of wheat for $3.15 billion. Thus, wheat has grown in price: the average price is $240 per ton against last year’s $198, Latifundist reports.
According to the Ministry of Agrarian Policy, in 2021, Ukrainian agrarians harvested 32.8 million tons of wheat. This is a new all-time high for two reasons. First: the total area under wheat sowing in 2021 is much larger than last year – 7.1 million hectares against 6.5 million hectares. Second, the weather conditions in the current season were extremely favorable for growing wheat.
Therefore, Ukraine will set a double record for wheat exports. Now the share of wheat in the total amount of exports from Ukraine (in January-September) is 6.5%. And at the end of 2020, it exceeded 7.3%.
“In 2020, Ukraine took the 5th place in the world market in terms of wheat exports – $3.6 billion. The USA, Canada, Russia and the EU exported more. At the same time, the share of Ukraine is 9.2% (in general, the volume of wheat exports in the world exceeded $39 billion). Over the past 10 years, Ukraine has significantly expanded its presence on the world market – the number of countries to which Ukrainian wheat is supplied for more than $10,000 has grown from 32 to 50. At the same time, more than 1,000 companies export Ukrainian wheat today,” writes Latifundist.
It should be noted that prices for Ukrainian wheat continue to grow for the fourth week in a row. Analysts at Atria Brokers note that as of October 26th, offers of Ukrainian wheat with 12.5% of protein and 11.5% of FOB Berdyansk with delivery in November increased by $1-2 per ton against Friday, October 22nd – to $298 and $295 per ton, respectively.
“Bid prices for corn with delivery in November strengthened by $2 per tonne against Friday – up to $278 per tonne of FOB Mykolaiv. In turn, the December proposals were announced at around $275 per tonne of FOB Mykolaiv against the background of pressure from the harvesting campaign,” analysts say.
In total, since the beginning of 2021/22 MY (as of October 27th), grain exports from Ukraine have reached 18.2 million tons. This is 2.7 million tons or 17.5% higher than the result for the same period of the last marketing year (15.5 million tons).
In particular, it was exported 11.7 million tons of wheat (1.5 million tons or 14.4% more than in the same period in 2020/21 MY);
For the rest of the grains, the situation looks like this:
- barley – 4.2 million tons (+908 thousand tons, 27.5%);
- rye – 54.5 thousand tons (+52.8 thousand tons, 32 times);
- corn – 2 million tons (+138 thousand tons, 7.4%).
As USM previously reported, limited supply and high prices for wheat from Russia are alienating importers. Ukrainian wheat is becoming more affordable for them and, at the same time, a high-quality alternative.
Due to high prices and limited supply on the Russian wheat market, some importers are looking for alternatives. Thus, wheat from Ukraine with a protein of 12.5% has become more in demand on the foreign market, and the difference in prices between wheat from Russia and Ukraine has begun to decrease.
