IKAR in Mass and Industry Media

Russian new crop wheat prices seen down 4 percent

Reuters

Russian wheat export prices are expected to fall 4 percent from current levels when the new crop is delivered to the market, IKAR, one of the leading Moscow-based agriculture consultancies, said.

Russia is expected to harvest a crop of more than 100 million metric tons of grains for the third year in a row, adding to a global surplus and increasing pressure on already weak global prices.

Russia’s prices for the new wheat crop with 12.5 percent protein content and for August delivery are quoted by market participants at $176.5 per metric ton on a free-on-board (FOB) basis in the Black Sea now, Dmitry Rylko, the head of IKAR, said.

The spot prices for the old crop were at $183 per metric ton at the end of last week, up $1 from a week earlier, Rylko added.

SovEcon, another Moscow-based consultancy, quoted FOB wheat prices in the Black Sea area at $183.5 per metric ton, up $2. Russia’s southern regions, the key for wheat exports via the Black Sea, usually start harvesting in June.

Weather conditions remain favourable both for winter grains and for spring grains, SovEcon said. Farmers have already sown spring grains on 3.4 percent of the planned area, or on 1.1 million hectares. The pace of sowing is unchanged from the previous year, according to theagriculture ministry data.

The country exported 28.75 million metric tons of grains, including 21.03 million metric tons of wheat, between July 1 and April 6, the agriculture ministry said. The pace of grain exports was up 8 percent year on year.

Domestic prices for third-class wheat fell 50 roubles compared with the end of the week earlier to 10,675 roubles ($159.5) a metric ton 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 down 25 roubles at 24,575 roubles a metric ton. Domestic sunflower oil prices fell 250 roubles to 53,925 roubles a metric ton, while FOB Black Sea export prices added $5 to $785 a metric ton.

IKAR’s white sugar price index for southern Russia was at $591.5 a metric ton at the end of last week, down $5 from a week earlier.

14.04.16

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