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Russian wheat prices down amid higher domestic supply

Russian wheat export prices fell last week amid higher domestic supply from farmers willing to free up storage before the new crop arrives in summer, analysts said on Wednesday. Russia, one of the world’s largest wheat exporters, continues to export despite difficulties with logistics and payments caused by Western sanctions on Moscow over what Russia terms its “special military operation” in Ukraine.
Prices for wheat with 12.5% protein content for supply in May from Black Sea ports were down by $10 to $370 free on board (FOB) at the end of last week, the IKAR agriculture consultancy said. Sovecon, another consultancy, said Russia exported 780,000 tonnes of grains last week, citing data from ports, compared with 590,000 tonnes a week earlier. “This is the highest weekly amount of wheat exports since
mid-February,” it added. Publication of import-export data by Russia’s customs service remains suspended. Sovecon expects the pace of wheat exports from Russia to slow down in coming weeks as the state export quota is being depleted, the rouble currency is strong amid capital controls and the export tax is rising. In the sunflower oil market, Russia set its export tax at $525 per tonne for June, up from $372 per tonne in May, the agriculture ministry said on Wednesday. Spring grains were planted on 3.3 million hectares as of April 28 vs 3.6 million hectares a year ago as the sowing campaign is lagging in Russia’s Central and Volga regions.

Other Russian data provided by Sovecon and IKAR:

Product: Price at the end Change from week
of last week: earlier
– Domestic 3rd class 16,075 rbls/t -200 rbls
wheat, European part ($253.25)
of Russia, excludes
delivery (Sovecon)

– Sunflower seeds 41,250 rbls/t -75 rbls
– Domestic sunflower 118,350 rbls/t unchanged
oil (Sovecon)
– Export sunflower $1,900/t +$50
oil (IKAR)
– Export sunflower $1,900-2,000/t unchanged
oil (Sovecon)
– White sugar, $885.2/t +$26.5
Russia’s south
Source: Reuters (Reporting by Reuters Editing by Kirsten Donovan)

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