Olivier Bouillet, Head of Analytics & Insights at ASAP Agri 

Since October 15th, Euronext has fall down by almost 20 EUR in the same time as parity EUR/USD lost ground. Euronext has indeed dropped by almost 30 USD within 6 weeks. But in the same time interval, Milling wheat prices in USD on CPT for Ukrainian origin are quite stable and are continually displayed in the surroundings of 210 USD/MT.

Indeed, the Ukrainian origin for 11.5% protein or feed quality is already competitive to find outlet towards EU and especially Italy and Spain. Ukraine is also competitive towards Asia towards Indonesia or Bangladesh for example. Of course, the soon arrival of Argentina and the Australia on the export arena will intensify the competition but Ukraine remain well priced towards EU or Asia even for December or January loadings. So, price adjustment isn’t foreseen.

To put in a nutshell, expectations for Ukrainian wheat price remain steady for the month to come.

Read full story at ASAP Agri Premium Reports