The offer of Ukrainian sunflower oil for October-November shipments remains limited. Some companies are focused on fulfillment of previously concluded agreements, while others do not hurry to sell amid unstable transportation to ports.
Export prices for Ukrainian grain continue to decline. Ongoing problems with grain shipments are putting pressure on quotes. During the week, Russian troops have launched another drone strike on the port infrastructure in the Izmail district.
In Ukraine, Cherkasy-based Azot continues to operate two urea production units. One of the units supplies raw materials for UAN production, while the other produces a commercial product. As a reminder, the operation of plant’s urea shops may be unstable in October.
In Ukraine, phosphate fertilizers are being purchased mainly in small lots. Demand for NPK fertilizers remains low. Some farmers are buying small and medium-sized batches of the product. Note that supplies of imported NPK have started to decline seasonally.
A mixed price trend has been reported on the Ukrainian grain export market this week. Meanwhile, quotes have been going down in most cases. Ukrainian wheat is actually offered for shipments from the Black Sea ports, but traders say it is quite difficult to compete with grain of other origins now.
Quotes for EU grains have dropped in the last week of September, attracting the attention of importers. According to market participants, Egypt’s GASC has purchased 170,000 t of wheat originating from Romania (120,000 t) and Bulgaria (50,000 t) at $271.8/t C&F.
U.S. wheat remains uncompetitive on the world market. Progressing harvesting of corn (15% complete), combined with large supplies from Brazil, put pressure on relevant export quotes. However, corn prices have increased amid reports of a large volume sale to Mexico.
Brazilian corn prices have increased this week due to lively trade and exports. Anec forecasts total corn exports in September at about 9.6 million t (10 million t a week earlier).
Export quotes for Kazakh grain have stabilized, but remain quite high. Recent upturns in wheat prices have already led to higher flour prices in Tajikistan, Uzbekistan and Kyrgyzstan. Quotes are not expected to fall due to a smaller than expected harvest and harvesting delays (resulting in loss of quality).
Trade has slowed down on the Russian grain market, which puts pressure on export quotes. However, wheat offer prices are still holding steady this week, while barley quotes have inched down.