IKAR in Mass and Industry Media

Russian wheat export prices up on stronger rouble, lower stocks

Reuters

Russian wheat export prices rose slightly last week as the rouble strengthened and stocks fell in Russia's southern regions ahead of the new harvest, analysts said.

Black Sea prices for Russian wheat with 12.5 percent protein content were at $191 a tonne on a free-on-board (FOB) basis at the end of last week, up $1 from a week earlier, Russian agricultural consultancy IKAR said in a note.

Prices in the Azov Sea added $4 and reached $174 per tonne, IKAR added. The rouble currency rose 2.8 percent against the dollar last week.

Russia exported 30.5 million tonnes of grains, including 22.1 million tonnes of wheat, between July 1 and April 27, the agriculture ministry said. The pace of grain exports was up 9 percent year on year.

Domestic prices for third-class wheat added 50 roubles compared with the week earlier to 10,750 roubles ($161) a tonne in the European part of Russia on an ex-works basis, according to SovEcon, another Moscow-based consultancy.

Ex-works supply does not include delivery costs.

Domestic prices have been supported by demand from exporters buying grain ahead of May holidays and declining stocks in export-focused southern regions of Russia.

The country has public holidays on May 2-3 and May 9.

SovEcon also said average prices for sunflower seeds fell 225 roubles to 23,250 roubles a tonne. Domestic sunflower oil prices fell 675 roubles to 52,500 roubles a tonne, while FOB Black Sea export prices were up $15 to $800 a tonne.

Spring grains sowing is still running ahead of last year's pace amid favorable weather, with spring wheat sowing at the fastest pace of recent years, SovEcon said.

Farmers had sowed spring grains on 21 percent of the planned area - 6.6 million hectares by April 29, up from 4.9 million hectares on the same date a year ago.

Spring wheat was sown on 7 percent of the planned area, 953,800 hectares, up from 560,600 hectares, the agriculture ministry added.

IKAR's white sugar price index for southern Russia was at $604 a tonne at the end of last week, down $13 from a week earlier.

($1 = 66.7518 roubles)

05.05.16

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