Asia Grains-Black Sea Wheat Prices Ease On Hopes Of Ukrainian Supplies

Black Sea wheat prices being offered in Asia slid this week on expectations of higher supplies, after Russia and Ukraine signed a deal to boost shipments, which have taken a hit due to war between the two countries.

Wheat from the Black Sea region was quoted below $400 a tonne, including cost and freight (C&F), to Southeast Asia for September shipment, down from around $415 a tonne quoted a couple of weeks ago, two Singapore-based traders said.

“Prices have come down after the Russia-Ukraine deal which is generating some buying interest,” said one of the traders.

“But we have seen the bottom and prices are likely to rise from the current levels as overall global supplies remain tight.”

U.N. aid chief Martin Griffiths said on Thursday he was hopeful the first shipment of grain from a Ukrainian Black Sea port could take place as early as Friday, but “crucial” details for the safe passage of vessels were still being worked out.

Griffiths said Turkish, Russian and Ukrainian military officials were working with a U.N. team at a Joint Coordination Center in Istanbul to hammer out standard operating procedures for the deal agreed by the four parties last Friday.

Australian Premium White (APW) wheat was quoted around $380 a tonne, free on board (FOB), while Australian Standard White (ASW) wheat was being offered around $360 a tonne, traders said.

For the new crop, which will be harvested in November-December APW was being offered around $370 a tonne FOB and ASW at $355 a tonne.
Source: Reuters (Reporting by Naveen Thukral Editing by Mark Potter)