Ukrainian wheat is currently in demand from Asian countries – Bangladesh, Indonesia, and the Philippines – which are experiencing a lack of grain supply. This was stated by the experts of the analytical center of the agricultural cooperative “PUSK”, created within the framework of the Ukrainian Agrarian Council, the press service of the UAC reported on October 18.
“Ukraine harvested wheat at the level of last year, but the logistics is not handling it. However, over the past few weeks, large-tonnage vessels of the Panamax type have been steadily entering Odesa’s ports, and there is significant demand from Asian buyers on a CIF basis. Namely, Bangladesh, the Philippines, and Indonesia. If you look at the price for wheat that Ukraine can offer, then we can win a lot in the competition,” analysts say.
They also reminded that traditionally, starting from December, Australia meets Asia’s wheat needs, but according to the latest USDA report, the Australian grain harvest this season may drop to 25 mln tonnes.
“China is actively contracting Australian wheat and Asia is undersupplied. Indonesia alone requires 10 mln tonnes of wheat and is one of the largest buyers of grain. However, Australia is willing to switch to deliveries to China, because it is a more premium market,” experts said.
In these conditions, according to experts, other Asian countries switch to deliveries from the Black Sea, they are interested in Ukrainian wheat in Romania, which can be contracted at a price of about 285 USD/t. The problem is the limitation in logistics because only about 1 mln tonnes of grain can be exported from Odesa ports per month. Conditional prices for wheat are 165-170 USD/t on CPT Danube ports basis, 218-225 USD/t DAP Romania, 145-150 USD/t CPT Odesa for 2-3 grade wheat.
“Last week, the Odesa ports intensified their trade, the price tags are beginning to equal those of the Danube ports. Demand is increasing, and it will push prices up, we can expect a weekly increase in wheat prices at the level of 3-5 USD/t”, the center predicts.
Source APK-Inform