Ukrainian wheat: how does the holiday period affect the fulfillment of export contracts?

Published Dec 11, 2024

Tridge summary

The wheat market is experiencing stable demand and prices are expected to rise, despite the challenges of the holiday season in December. Ukrainian wheat exports have reached 136,000 tons, with high demand, especially from Spain. However, there is a risk of running out of contracts for traders as they aim to fulfill a total volume of 1.1 million tons by the end of December. The main competition comes from Russian wheat, which is dominating markets in Algeria, Tunisia, and the Middle East, but an expected export quota of 11 million tons in 2025 and unsatisfactory state of 30% of crops in Russia could change the dynamic, potentially leading to a significant increase in wheat prices in Ukraine.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The wheat market shows stable demand and expects prices to rise. December is traditionally considered a "short" month for business activity due to the holiday season, which adds challenges for wheat market participants. This is reported by analysts of the agricultural cooperative PUSK, established within the borders of the Var. "As of December 9, the export of Ukrainian wheat reached 136,000 tons. However, there is a risk of "burning out" of contracts for traders, as it is planned to fulfill contracts for a total volume of 1.1 million tons by the end of December, - the PUSK notes. Demand for Ukrainian wheat remains high, especially on the Spanish market, where last week agreements were concluded for the supply of fodder wheat at a price of $237-238 per ton with delivery in January. At the same time, the main competition is observed from the side of Russian wheat, which, thanks to its aggressive price policy, dominates the markets of Algeria, Tunisia and the Middle East. But the ...

Source: Agravery