Wheat Prices Soar Amid Export Concerns

The global wheat market has experienced a significant surge in prices over the past week due to concerns about the resumption of exports from Ukraine and Russia. Futures for soft wheat in Chicago increased by 11% in the week, while prices on Euronext in Paris rose 4.2%. However, despite these gains, American and European wheat export rates remain lower than last year's pace, indicating low demand.

In contrast to the global market, wheat export purchase prices in Ukraine's Danube ports have remained stable at $160-170 per ton for food wheat and $150-155 per ton for feed wheat. Demand prices for food wheat on the Ukrainian-Romanian border increased by $2-5 per ton to $150-155 per ton.

Processors in Ukraine maintain demand prices for food wheat at 6,700-7,200 UAH/t with delivery to the mill. The Turkish government is actively seeking ways to negotiate a resumption of grain exports from Russia and Ukraine through the Black Sea shipping corridor, citing concerns about delayed supplies that could force price increases.

A recent meeting between Putin and Chinese leader Xi Jinping has raised hopes for an end to the conflict in Ukraine, potentially stabilizing wheat prices. The US Treasury Secretary's delegation also met with Russian officials, suggesting a decrease in stock quotes and stabilization of prices in Constanta this week.