An increase in demand from importers for fear of a shortage of wheat due to possible restrictions by some suppliers has led to an increase in export prices for milling wheat in Ukraine, the consulting firm APK-Inform said on Thursday.
The spread of the novel corona virus has caused some nations to impose restrictions. Neighboring Russia is considering limiting the sale of sunflower seeds.
"The price increase is also compounded by the need for traders to have to fulfill export contracts in the face of farmers' sales constraints and similar price dynamics in the Russian market," the consultant said.
Milled wheat from Ukraine with 12.5% protein has increased by $ 7 a ton since the beginning of this week and has reached a price of $ 207 to $ 211 per ton FOB Black Sea.
Wheat with 11.5% protein is traded at $ 205 to $ 209 per ton.
Ukraine, a major global wheat exporter, has so far exported 17.5 million tons of raw material in the 2019/20 season, 4.4 millionmore than at the same time in the 2018/19 season, as data from the Ministry of Economy show.
Ukraine plans to export 20 million tons of wheat in the 2019/20 season (July-June), compared to 15.6 million tons in the 2018/19 season.
Source
HANSA Terminhandel
