IKAR in Mass and Industry Media

Russian wheat export prices fall further on weak rouble

Reuters

Russian wheat export prices fell further last week and early this week due to a continuing decline in the rouble, which makes Russian grain more competitive on the global dollar-denominated markets, analysts said on Tuesday. Black Sea prices for Russian wheat with 12.5 percent protein content were at $181 a tonne on a free-on-board (FOB) basis at the end of Monday, down $0.5 from a week earlier, Russian agricultural consultancy IKAR said in a note.

SovEcon, another Moscow-based consultancy, quoted FOB wheat prices in the Black Sea area down $1 at $181.5 per tonne at the end of last week. The rouble hit a historic low of 86 per dollar on January 21 due to weak oil prices. It has strengthened to around 80 since then but remains volatile. Russia exported 21.3 million tonnes of grains, including 16.0 million tonnes of wheat, between July 1 and January 20, the Agriculture Ministry said. The pace of grain exports was down 3 percent year on year.

Domestic prices for third-class wheat gained 125 roubles compared with the end of the week earlier to 11,275 roubles ($140) a tonne in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs. SovEcon also said average prices for sunflower seeds were up 375 roubles at 25,800 roubles a tonne. Domestic sunflower oil prices added 1,425 roubles at 58,425 roubles a tonne because of the rouble's weakening, while FOB Black Sea export prices were down $5 at $765 a tonne.

28.01.16

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