Russian wheat price falls with global trend, higher domestic supply

Russian wheat prices fell last week amid a downward trend on global markets, low demand from exporters and growing domestic supply, analysts said on Monday.

The market is still waiting for clarity on whether an accord to allow safe passage for Black Sea grain exports will be extended next month.

Russian President Vladimir Putin discussed the Black Sea Grain Initiative, which allows grain to be exported from three Ukrainian ports despite a Russian blockade, with his Turkish counterpart Tayyip Erdogan last week.

The initiative is up for renewal next month, but Russia has signalled it is unhappy with certain aspects of the deal.

Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from Black Sea ports, were down $3 to $296 per tonne last week, the IKAR agriculture consultancy said.

“Demand is low and there is pressure from Europe and Australia,” said IKAR chief Dmitry Rylko.

Russian wheat exports were 530,000 tonnes last week, compared with 730,000 the previous week, the Sovecon consultancy said, citing port data.
Source: Reuters (Reporting by Olga Popova; Writing by Alexander Marrow; Editing by Kevin Liffey)