Russian wheat export prices rise on global concerns about dry weather
Russian wheat export prices rose last week amid global concerns about unfavourable weather in key exporting countries, including Russia, analysts said on Monday.
Russian wheat with 12.5% protein loading from Black Sea ports for supply in August was $248 a tonne free on board (FOB) at the end of last week, up $7 from the previous week, the IKAR agriculture consultancy said in a note.
Another consultancy, Sovecon, recorded a $6 rise to $245 per tonne of wheat. Barley was up $2 at $214, it said.
Domestic prices for wheat rose sharply as well due to lower export tax, which Moscow sets each week, and some traders searching for grain urgently amid approaching vessels, Sovecon said.
A few large traders upped domestic prices in Russia’s south quickly last week, and “as usual, after such rapid increase many farmers halted any sales and many defaulted on their contracts,” Sovecon said.
“This definitely does not look like an easy start of the season for Russian traders,” it added. The current 2021/22 marketing season started on July 1.
The weather remains mostly dry, which is slightly negative for spring wheat, corn (maize) and sunflower crops in Russia, Sovecon said, adding that it expected average wheat yield to decline further year-on-year soon.
Source: Reuters (Reporting by Polina Devitt; Editing by Anil D’Silva)