Russian wheat export prices down under pressure from good crop

Russian export prices for the summer’s new wheat crop fell last week under pressure from approaching good crop in the Black Sea area, analysts said on Monday.

Wheat exports from Russia, Ukraine and Kazakhstan are expected to rise by 5% in new 2021/22 marketing season, which starts on July 1, a Reuters poll showed last week.

Prices for new-crop Russian wheat with 12.5% protein loading from Black Sea ports and for supply in July were $248 a tonne free on board (FOB) at the end of last week, down $7 from the previous week, the IKAR agriculture consultancy said in a note. 0#IKAR

Russia’s wheat export tax, which Moscow changes each week, has risen by $10 since its launch on June 2 to $38.1 per tonne but still remains low compared with the level in May. This is expected to boost Russian exports in June.

The weather is improving both for winter and spring crops in Russia, Sovecon, another consultancy in Moscow, said.

Southern, Central and Volga regions saw good rains last week. This week is expected to be dry and warm – positive for southern farmers who will start harvesting within one or two weeks, it added.
Source: Reuters (Reporting by Polina Devitt; editing by Louise Heavens)