Ukraine Wheat Strengthens in January After December’s 1.7% Adjustment

After recovering in late December with a bearish movement due to limited export demand and heavy competition from other Black Sea countries, the Ukrainian Wheat market started January with a positive outlook. By the second week of January, exporters' attitudes had changed, as improved logistical conditions, adequate port activity, and increasing restrictions on Wheat supplies at ship docks had created stronger expectations for continued sales during January. As January continued, international interest in buying Ukrainian Wheat increased following the December holidays, resulting from foreign buyers who were eager to cover their Wheat requirements for the marketing year. Wheat supplies were orderly; however, Wheat inventories, which were previously over-extended in December, were reduced because of normal Wheat movements supporting prices. Domestic sellers of Ukrainian Wheat have continued to sell with discipline, while steady operating conditions have encouraged exporters to focus on making forward contracts instead of discounting their inventories. Market participants are now confident that the month of January will be the beginning of a recovery from previous bearish trends, primarily due to renewed export activity, limited carryover Wheat stocks, and ongoing international demand supporting prices of Ukrainian Wheat.