Trading activity on the Ukrainian grain market will resume in the near future - analysts

Quotations of American wheat after the trading results continued to grow, while the prices of European wheat reacted with a decrease to expectations regarding the continuation of the grain agreement. This was reported by Barva Invest analysts in Telegram.

We will remind, on Saturday, March 18, the official extension of the "grain initiative" for another 120 days was announced.

At the same time, the Russian Federation stated that they are ready to extend the agreement, but only for 60 days, adding demands for the lifting of restrictions on their export of grain and fertilizers. Meanwhile, the President of Turkey simply announced its extension without specifying the term.

"The Ukrainian market remained inactive, but the continuation of the grain corridor, at least in some form, will contribute to the recovery of trade activity in the near future," the analysts added.

Latest indications:

May Chicago wheat contract (ZWZ2) — $7.10/bu (+0.11 $/bu);

the May wheat contract on Euronext (EBMZ2) — €265.5/t (-€3/t);

the May Black Sea wheat contract (BWFZ2) — $289.75/t ($-0.5/t);

DAP ports (11.5%) — $205/t;

DAP Izov (11.5%) — $195-200/t.

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Corn quotations showed minimal growth against the background of continued purchases of corn by China in the US:

May Chicago corn contract (ZCZ2) — $6.34/bu (+0.01 $/bu);

the May Black Sea corn contract (BWFZ2) — $256.25/t (unchanged);

DAP ports — $200/t;

DAP Izov — $180-190/t.

Without clarity regarding the future fate of marine exports and against the background of low demand from European buyers, activity on the Ukrainian market remained weak. However, the arrival of new ships for loading at Odesa ports will contribute to the gradual improvement of the situation.