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The Ukrainian wheat market has faced a sharp decline in prices due to reduced activity of traders and exporters towards ports. Food wheat has dropped by $5-6 per ton, while feed wheat has lost less, only $1 per ton.
The main reason for the price collapse was the increase in wheat supply in the international market. Russia is increasing its exports, and expected harvests from Canada and Australia have significantly boosted confidence among global importers in the availability of sufficient supply. Under these conditions, Ukraine will have to actively compete for sales markets.
The total wheat exports from Ukraine in November amounted to 1 million tons, compared to 1.1 million tons last year. As of December 4, Ukraine has harvested 53.5 million tons of grain and leguminous crops.
Experts warn that the active competition for wheat sales markets is just beginning, and Ukrainian exporters will have to seek new strategies to maintain competitiveness in the global market.
Source: Online/GFMM
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