Ukrainian wheat attracts importers due to high grain prices in Russia
The limited supply and high prices for wheat from the Russian Federation alienate 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 external market, and the difference in prices between wheat from the Russian Federation and Ukraine began to decrease, Refinitiv Agriculture reports.
The Russian export duty on wheat with protein of 12.5% keeps crop prices high. In mid-August, bid prices for wheat from Russia rose to $300/ton FOB, and for the second month in a row they have been above this level. The few proposals for the supply of wheat from Russia in the second half of October and in November reach $308-315/ton.
From September 29th to October 5th, the export duty on Russian wheat was set by the Ministry of Agriculture at $53.5/ton, against $50.9/ton a week earlier and $30/ton at the beginning of the season.
As for proposals for the supply of Ukrainian wheat with 12.5% protein, in October-November prices are $300-305/ton FOB. Traders report that wheat from Ukraine with 12.5% protein is in demand among importers as a replacement for the more expensive and limited supply of grain from the Russian Federation.
“The prices for Ukrainian wheat with 12.5% protein are lower than for Russian, and the quality this year is pretty decent,” an anonymous trader from Kyiv told the source.
The spread between Ukrainian wheat with 11.5% protein and Russian wheat with 12.5% decreased to $4.5/ton, against $12.5/ton two weeks earlier.