IKAR in Mass and Industry Media

Russian wheat prices down with lower crop risks, freight rates rise

AGWEEK.com

MOSCOW - Russian export prices for wheat fell last week due to larger supplies from the current crop and fewer risks for the next year's crop, analysts said on Monday, adding that freight rates in the Azov Sea rose.

The rates for freight rose due to risks that either Russia will restrict grain exports to Turkey or Ankara will limit deals with Moscow over the downing of a Russian bomber jet near the Syria-Turkey border on Nov. 24.

Black Sea prices for Russian wheat with 12.5 percent protein content were at $194 per ton on a free-on-board (FOB) basis at the end of last week, down $3 from a week earlier, Russianagriculture consultancy IKAR said.

Prices in the Azov Sea were down $5 to $165 per ton, Dmitry Rylko, the head of IKAR, said in a note. He did not specify the level of freight rates.

SovEcon, another Moscow-based consultancy, said FOB wheat prices in the Black Sea were down $2.5 to $194.5 per ton and prices in the shallow-water ports were at $169 per ton, down $3.5.

Warm December weather in Russia is expected to help the major grain exporter harvest a 100 million ton crop for the third year in a row, SovEcon said last week.

Also last week, Russia's agriculture ministry upgraded its forecast for the country's 2015 grain crop by 0.5 million tons to 102 million tons. SovEcon currently sees the crop at 103.7 million tons, including 61.1 million tons of wheat.

The ministry also bought 122,600 tons of grain on the domestic market to replenish state stocks last week, SovEcon added.

Domestic prices for third-class wheat added 25 roubles to 10,900 roubles ($159) per ton in the European part of Russia, on an ex-works basis, SovEcon said.

SovEcon also said average prices for sunflower seeds were flat at 23,825 roubles per ton. Domestic sunflower oil prices were up 250 roubles to 52,075 roubles per ton, while export prices were at $790 per ton, down $5.

IKAR's white sugar price index for southern Russia was at $578 per ton, down $8 from a week earlier.

09.12.15

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