Wheat prices rise in Ukraine despite the start of harvest
16 July 21:17
Wheat prices continued to rise in Ukraine last week despite the start of the harvesting campaign. According to APK-Inform analytical agency, the grain market showed mixed price trends, "Komersant Ukrainian" reports .
In particular, the limited supply of wheat amid strong demand from domestic consumers and positive dynamics in the export market supported prices. At the same time, the start of the harvest and a gradual increase in grain volumes on the market began to put pressure on the price situation.
As of mid-July:
- grade 2 wheat was trading in the range of 9200-10400 UAH/t,
- feed wheat – 8500-9700 UAH/t on CPT terms (with delivery to the enterprise).
Wheat prices in Ukraine are rising for several key reasons:
1. Limited supply
- Despite the start of the harvest, there is still not much grain on the market – farmers may hold back their products in anticipation of higher prices or due to logistical difficulties.
- Some farms have not yet completed harvesting, so the full amount of grain has not been released to the market.
2. High domestic demand
- Processing companies, traders, and exporters are actively buying grain, creating competition for limited supplies.
- There is also a demand for high-quality grade 2 wheat, which is harder to find during the period of unstable weather.
3. Positive dynamics in the export market
- The external market remains attractive and active, and demand for Ukrainian wheat remains strong, in particular due to:
- harvest problems in some countries;
- reduced supply from Russia due to new sanctions;
- geopolitical risks that increase the price of risk in the agricultural market.
4. Inflation and currency factors
- If the hryvnia is weakening, exporters make more profit in hryvnia equivalent, so they can afford to pay more on the domestic market.
- General inflation and rising logistics costs (especially due to martial law) also affect prices.
Despite the seasonal increase in supply, the market remains tense due to buyer competition, high demand, export activity, and expectations about the market. This maintains or even pushes prices up.
