IKAR in Mass Media

Russian wheat export prices decline further

MOSCOW: Russian wheat export prices declined last week, making Russian wheat more internationally competitive, while domestic prices rose due to a weaker rouble and slow sales by farmers, leading agricultural consultancies said on Monday.

The price for Russian wheat with 12.5 percent protein content for free-on-board (FOB) delivery in late September to early October was USD225 per metric ton at the end of last week, down USD3 from the previous week, said Dmitry Rylko, head of the IKAR consultancy. The Sovecon consultancy estimated the price at USD226-USD228 per metric ton FOB, compared to USD228-USD230 at the end of the previous week, adding that exporter demand and a weaker rouble supported domestic prices.

“At these levels, Russian wheat remains competitive,” Sovecon said in a weekly note. The rouble weakened by over 5percent last week in anticipation of a 200 basis points (bps) cut to the central bank’s key interest rate. The rouble started to strengthen again on September 12 when the central bank cut by only 100 bps to 17 percent.

A weaker rouble increases farmers’ rouble profits from exporting wheat.

Russia, the world’s largest wheat exporter, also increased the wheat export duty almost threefold to 495.9 roubles (USD5.91) per metric ton starting on September 17.

The duty, introduced in 2021 to protect the domestic market, usually rises in autumn when exports are increasing as well.

Sovecon said that with the rapid increase of the duty and slow sales by farmers, the weaker rouble will not necessarily result in further declines in export prices.“The bearish narrative that a softer rouble automatically pushes FOB lower is not fully playing out,” the consultancy said.

16 сентября 2025 года

Source: Reuters | #grain | Comments: 0 Views: 33

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