In some contracts for delivery of Ukrainian wheat of flour-milling quality (with protein of 11.5%) of the future harvest are fixed at about $225/t, for feed wheat – $218/t (delivery basis in both cases – CPT, ports of Greater Odessa). This is reported by latifundist.
At the same time, the physical (spot) wheat market at the beginning of the penultimate week of March remains stable and works mainly in the mode of fulfillment of previously concluded contracts. Prices are practically unchanged: food wheat is trading at $220-222/t, while feed wheat – $213-215/t.
Ukrainian wheat exports in March amounted to about 388 thousand tons, with deliveries concentrated in the markets of North Africa and the Middle East. In particular, Algeria accounts for about 40% of the volumes, while significant shipments are also shipped to Egypt, Israel and Tunisia.
Market analysts note that the forward and spot grain markets work differently: exchange prices (forward transactions) react quickly to world events, while the physical (spot, current) market changes more slowly and depends on regional tenders, competition and other local factors.
