Russian wheat prices down amid healthy supply

Russian wheat export prices fell slightly last week amid healthy supply from domestic farmers, Russian wheat prices down amid healthy supply analysts said on Monday.

Russian wheat with 12.5% protein loading from Black Sea ports for supply in December was at $252 a tonne on a free-on-board (FOB) basis at the end of last week, down $2 from the week before, the IKAR agriculture consultancy said in a note.

Sovecon, another agriculture consultancy in Moscow, said wheat and barley were steady at $255 and $216 a tonne, respectively.

Demand from exporters and the livestock industry in the domestic wheat market was muted last week, while demand from flour millers remains strong, Sovecon said.

“Supply is slightly higher as some farmers are concerned about all talks about export restrictions and ready to sell at the current prices,” it added. Russia’s agriculture ministry proposed setting a grain export quota of 17.5 million tonnes for Feb. 15-June 30. The government is yet to approve this proposal. Some livestock consumers are calling for an export tariff on Russian wheat.

The weather this month does not look good for winter wheat regions so far, Sovecon said, adding that it was mostly dry last week and cold weather arrived to parts of the Volga region.

Other Russian data provided by Sovecon and IKAR:

Product: Price at the end Change from week of last week: earlier

– Domestic 3rd 15,950 rbls/t +25 rbls class wheat, ($214.6) European part of Russia, excludes delivery (Sovecon)

– Sunflower seeds 39,900 rbls/t +875 rbls (Sovecon)

– Domestic 88,500 rbls/t +1,650 rbls sunflower oil (Sovecon)

– export $1,100/t -$40 sunflower oil (Sovecon)

– export $1,095/t -$35 sunflower oil (IKAR)

– Soybeans 40,700 rbls/t +1,700 rbls (Sovecon)

– white sugar, $538.6/t -$5

Russia’s south

($1 = 74.3380 roubles)

(IKAR)
Source: Reuters (Reporting by Olga Popova; writing by Polina Devitt; editing by Chizu Nomiyama)