Ukrainian wheat is becoming more expensive on world market ahead of new season - analysts

MOSCOW. April 10 (Interfax) - Ukrainian wheat has started to go up in price due to a drop in supply from key players who have scaled down their activity ahead of the new harvest, Ukrainian media reported, quoting experts from the analytical center of the PUSK agricultural cooperative, set up within the Ukrainian Agri Council (UAC) framework.

"Importers are prepared to wait for supplies of wheat, demand for which is growing. The increase in demand is supported by forecasts of lower production in the EU, the United States and Ukraine, that is all key exporters," the Ukrainian analysts said.

"So far in April, 541,000 tonnes of wheat have already been exported. Some of the wheat that could not be exported in March will be shipped from Ukraine in April. So we could reach 3 million tonnes of exports this month, this will happen due to March contracts," they said.

The experts said the market was picking up and prices were returning to previous levels and will continue to rise. "Our main rival, Russian wheat, has gone up in price by $8-10 per tonne in recent weeks. Prices for Ukrainian wheat will rise by at least $2-3 per tonne by the end of the week [...]. It is anticipated that demand will continue to drive the wheat market up," they said.

The analysts said wheat prices on CPT delivery terms will by the end of the week be about $175 per tonne at Danube ports and $170 per tonne at deep-water ports, and $198-203 per tonne DAP (delivery at place) Constanta.

They said Ukraine exported a lot last season due to large carryover stocks. These will not exceed 1 million tonnes this season, since the ports are operating. But the sown area is being reduced, and less wheat will be harvested. The first estimates of the export potential for Ukrainian wheat in the new season have already been lowered by 3 million-4 million tonnes.