Prices for Ukrainian wheat rise to $220/tonne amid Iran events - analytical platform

MOSCOW. March 3 (Interfax) - Export purchase prices for food-grade wheat for delivery to Black Sea ports in Ukraine rose to UAH 10,600-10,700 ($216-$220) per tonne last week, driven by a sharp hike in prices on global exchanges, Ukrainian media reported citing the GrainTrade information and analytical platform.

Feed wheat prices at Ukrainian ports have also risen to UAH 10,300-10,350 ($209-$211) per tonne. However, further growth in prices for Ukrainian grain may be contained by higher sea freight rates due to Iran's blockage of the Strait of Hormuz, and therefore, experts do not recommend counting on a lengthy period of high prices.

Global wheat futures rose 2.2%-3.9% last Friday alone in expectation of the U.S. strikes on Iran. Overall, wheat prices on exchanges have grown 4%-11.9% over the past month. Apart from geopolitics, the market is under pressure of hot and dry weather in key U.S. grain growing regions.

GrainTrade analysts believe that prices could quickly correct downwards after the active phase of attacks on Iran ends, especially if forecasts for improved weather in the U.S. come true.