Prices for milling wheat in Ukraine continue to rise sharply, causing concern among flour mills. According to APK-Inform news agency, the price of 2nd class wheat is currently ranging from 6800 to 7700 UAH per ton, which is 300-500 UAH higher than at the end of last week.

As of January 26, this price increase is a result of the limited supply of milling wheat, as many farmers refrain from selling. High demand from processing and export-oriented companies, as well as increased competition between them, also contribute to the price increase.

Analysts say that the high demand for wheat comes from both domestic and exports, creating a shortage in the domestic market. Despite the higher prices, supply volumes on the market remain low, causing instability in the industry.

Yuriy Duchenko, President of the All-Ukrainian Bakers Association, emphasizes that the persistence of high prices for 2nd class wheat is the main problem for Ukrainian bakers. He pointed to the lack of wheat on the domestic market and emphasized that this could lead to further price increases for bread and bakery products.

According to the State Statistics Service, in 2023, prices for rye-wheat bread increased by 2.1% to UAH 35.83 in August compared to UAH 35.06 in January. As for a loaf, the price increased by 3.1% to UAH 22.52 from UAH 21.83.

In this context of wheat price dynamics, the situation continues to be tense, in particular, with regard to the impact on the cost of bread and food for the Ukrainian population.