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Russian wheat prices rise after one week of decline

Russian wheat export prices rose last week, after a decline the week before, driven by suppressed sales by farmers, a stronger rouble and improved wheat prices in Chicago and Paris, analysts said on Monday.

Russian wheat with 12.5% protein loading from Black Sea ports was at $253 a tonne free on board (FOB) at the end of last week, up $2 from the previous week, said Dmitry Rylko, the head of the IKAR agriculture consultancy.

SovEcon, another Moscow consultancy, said wheat had stayed at $253, while barley rose by $3 to $214 a tonne.

“We expect Russian wheat to remain relatively flat near term,” SovEcon said.

Analysts said the lack of certainty surrounding the introduction of a grain export quota for January-June 2021 was supporting price increases. SovEcon said there had still been no official statements from Russia’s agriculture ministry about export restrictions.

The weather last week was friendly for winter wheat, SovEcon said, but warned of a sharp drop to freezing temperatures starting from mid-November, which could negatively affect plants.

SovEcon analysts said they expected the rouble grain market to fall on weaker demand from exporters but that it was likely to remain in growth for the next one to two months.

Source: Reuters (Reporting by Olga Popova; Writing by Alexander Marrow; Editing by Steve Orlofsky)

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