Asian demand for Ukrainian wheat to resume after New Year holidays - analysts

MOSCOW. Dec 27 (Interfax) - There is a price lull on the Ukrainian wheat market caused by a decrease in business activity during the New Year holidays, after which the demand for Ukrainian grain will be restored again, the Ukrainian Agrarian Council's (UAC) Pusk analytical cooperative said at the weekly briefing.

"Until the end of the week, conditional prices per tonne of wheat will be in the range of $185-190 SRT DANAI, $178-185 Odessa, and $225-230 Dap Romania. In December-January, forage wheat prices can be $215-218 DAP Italy. Traders have already contracted about 1 million tonnes of Ukrainian wheat for January," Ukrainian media said, citing the analysts.

According to them, most of Ukrainian wheat is shipped to Asia.

"On the whole, the global market has the lever and starts trading the new harvest. China is actively buying food wheat in Australia and France. France can complete the export of wheat in February or March. Asian countries, in turn, understand there might be weather problems next season and it is better to have wheat reserves," the UAC said, assuming that Ukrainian wheat would remain in demand in Asia.