World wheat prices remain under supply pressure, although they continue to rise in Ukraine

Wheat

France

Published Mar 20, 2024

Tridge summary

Ukraine has seen an increase in food wheat prices due to a shortage of offers, despite fodder wheat prices remaining stable due to ample supply. Wheat exports from Ukraine have risen by 15.8% in the first 18 days of March compared to last year. Global wheat prices have remained largely unchanged, but European prices are being supported by forecasts of reduced crop in the EU and worsening crops in France. Meanwhile, heavy rains in Great Britain have led to a decrease in wheat sowing area. US wheat exports have fallen by 54% in the week of March 8-14, and China's wheat imports in the first two months of the year were 17% less than in 2023. Wheat prices are under pressure from a large supply of the old crop, but forecasts of reduced supply in the new season are leading to a gradual increase in quotes for the new crop.

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Original content

In Ukraine, the purchase prices for food wheat with delivery to the Black Sea ports due to a shortage of offers increased during the week by $5-8/t to $165-170/t or UAH 7,200-7,400/t. Prices for fodder wheat, against the background of a significant supply, remained at the level of $145-148/t, but prices in hryvnia increased by 100-200 UAH/t to 6250-6350 UAH/t thanks to the increase in the dollar exchange rate by 1.5%. Export of wheat from Ukraine for March 1-18 amounted to 1.13 million tons, which is 15.8% higher than last year's corresponding figure. In total, 12.9 million tons of wheat were exported in 2023/24 MR, which is 5% ahead of last year's pace. World wheat prices were almost unchanged during the week, but May futures rose yesterday: Prices for European wheat support forecasts of a reduced crop in the EU and a worsening of crops in France. Strategie Grains experts lowered the forecast for soft wheat production in the EU in 2024/25 FY by 1 million tons to 121.6 million ...

Source: Graintrade