- Prices ease: Feed wheat at Greater Odessa ports slipped by USD 1-2/ton to USD 204-211/ton CPT as of December 11.
- Downward pressure: Weakness in milling wheat and Russian attacks on port infrastructure weighed on values.
- Limited downside: Tight regional grain supply and firmer demand for feed wheat versus milling wheat helped cushion the decline.
- Sentiment: Market tone is broadly bearish but supported by underlying physical tightness and logistics constraints.
Ukrainian Feed Wheat Market Overview
Feed wheat purchase prices at the ports of Greater Odessa continued to edge lower this week, extending their recent decline. As of December 11, feed wheat values were assessed in the range of USD 204-211 per ton CPT port, down by roughly USD 1-2 per ton since the start of the week, according to APK-Inform.
The adjustment reflects spillover weakness from the broader wheat complex, where milling wheat and related feed crops have been trending lower. At the same time, ongoing Russian attacks on Ukrainian port infrastructure are disrupting normal operations, adding logistical uncertainty and exerting additional pressure on prices.
Price Dynamics and Drivers
| Location | Commodity | Price (CPT Port) | Change vs. Start of Week | Date |
|---|---|---|---|---|
| Greater Odessa ports | Feed wheat | USD 204-211/ton | -USD 1-2/ton | 11 December |
Despite these headwinds, the magnitude of the decline has been relatively modest. Limited grain availability in the region continues to underpin the market, creating a floor under prices even as external benchmarks soften. Traders are also displaying stronger buying interest in feed wheat compared with milling wheat, targeting more competitively priced specifications amid cost-conscious demand.
Market Sentiment and Outlook
Overall sentiment in the Odessa feed wheat market can be characterized as bearish with support. The latest USD 1-2/ton decline aligns with broader weakness across grains and reflects some compression of the geopolitical risk premium normally embedded in Ukrainian export prices. However, physical tightness and the potential for further operational disruptions at ports are likely to act as stabilizing forces.
Market participants are closely tracking port throughput capacity, security conditions, and on-farm grain availability. Should supply remain constrained or logistics face renewed interruptions, the downside for feed wheat prices may be limited, even if international milling wheat benchmarks remain soft.
Source: Market Data
Leave a Reply