The Rise in the Price of Wheat in Ukraine Continues

On Thursday, August 12, there was a significant increase in the price of food wheat. In particular, for grains of 2 classes with a protein content of 12.5%, the price increased to 8,000 hryvnias ($ 260) per ton (including the cost of delivery).

A steady increase in the price of wheat has been observed in Ukraine since July 1, 2021. During this time, wheat has risen in price by a total of UAH 1,500 per tonne, and only in August, there was a rise in price by UAH 1,000 per tonne. This was due to the deterioration in the quality of cereals, which was due to prolonged rainfall in July. Because of the low nature and fusariosis damage, farmers are forced to convert a significant proportion of the wheat into fodder. Last year, 20% of the harvest was transferred to fodder, and this year, the share will be higher.

Crop problems in foreign markets also have an impact on prices. The Russian market is experiencing the same difficulties as the Ukrainian one. A low winter wheat harvest is also expected in Kazakhstan. However, there are no significant movements in Western markets. For example, on the Chicago Mercantile Exchange, Black Sea wheat futures rose slightly. The growth ranged from $ 0.25 per ton for September futures to $ 2.25 per ton for December futures.