Danube Ports Wheat Prices Soar Amid Logistical Disruptions

Food wheat prices in Danube ports continue to rise due to limited farmer supply and logistical disruptions. According to APK-Inform, purchase prices for food wheat in the Danube ports show an upward trend this week. The main reason for the price increase is that farmers are holding back their grain because prices are below profitable levels and amid expectations that deep-sea exports will resume.

The situation is complicated by strong pressure from significant logistical disruption caused by Russian military strikes on port infrastructure, unusually shallow water levels on the Danube, and a shortage of rail capacity. This has led to buyers raising prices for grain that is physically available for shipment to cover previously concluded positions.

As of August 19, bid prices for Class 2 and Class 3 food wheat in the Danube ports stand at $168-180 per ton and $167-177 per ton CPT-port, respectively. This is $2-4 per ton higher than at the end of last week.