Uncertainty regarding the “grain corridor” puts pressure on wheat exports
21.02.2023 - 16:00
The Ukrainian wheat market is in conditions of uncertainty regarding the further effect of the Grain Agreement.
Uncertainty regarding the further operation of the “grain corridor” puts pressure on purchase prices in seaports and restrains trading activity, Anna Tanska, head of the department of grain and oil markets of IA “APK-Inform”, reports.
The Grain Agreement expires in March. The UN announced the start of negotiations on the continuation of the Grain Initiative already this week. Despite this, the local market remains quite restrained.
Uncertainty regarding the further work of the Grain Agreement increases the pressure on demand prices in the ports of Great Odesa and leads to a significant decrease in the purchasing activity of traders in this direction. At present, most of them are focused on shipping the volumes of grain already formed in port areas and are suspending purchases due to the low activity of concluding new contracts with importers, commented Tanska.
However, under current conditions, there is a further increase in shipments via alternative routes, which increases the imbalance between supply and demand and contributes to lower prices.
In particular, demand prices in the Danube ports for food wheat and fodder according to the results of last week were 217-223 and 208-216 dollars per ton. Demand prices in the ports of Great Odesa for food wheat mostly amounted to 204-212 dollars per ton.
