IKAR in Mass and Industry Media

Russian wheat export prices stable in thin market

Reuters

MOSCOW, May 2 (Reuters) - Russian wheat export prices were flat last week as market activity slowed ahead of the new crop arrival this summer and a trade dispute with Turkey continued, analysts said on Tuesday.

Turkey, traditionally the second largest buyer of Russian wheat after Egypt and the top buyer of its sunflower oil, has effectively put a hold on purchases of these products from Moscow by imposing high import tariffs in March.

Russian market players believe the move was in retaliation for Moscow's decision not to restore a visa-free regime with Ankara as well as open up its market for tomatoes to Turkish growers.

Some traders hope a meeting between Russian President Vladimir Putin and his Turkish counterpart, Tayyip Erdogan, on Wednesday will help resolve the dispute, but officials from both countries have previously suggested there will be no quick solution.

"Market participants believe (the meeting) could give an impulse to negotiations on repealing the trade barriers on agricultural products," said Moscow-based consultancy SovEcon.

Black Sea prices for Russian wheat with 12.5 percent protein content were at $186 a tonne on a free-on-board (FOB) basis at the end of last week, flat from a week earlier, Russian agricultural consultancy IKAR said in a note.

SovEcon also quoted FOB wheat prices in the Black Sea area at $186 per tonne.

The consultancies quoted prices for the new crop for July-August delivery at $172 and $170-172 per tonne respectively. Russia exported 30.39 million tonnes of grain, including 23.54 million tonnes of wheat, between July 1 and April 26, the agriculture ministry said. The pace of grain exports was down 0.3 percent year-on-year.

Domestic prices for third-class wheat fell 200 roubles compared with the end week earlier to 9,300 roubles ($163.24) a tonne in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.

New crop sunflower seed prices fell by 125 roubles to 16,957 roubles per tonne, SovEcon said, while domestic sunflower oil prices lost 350 roubles to 39,725 roubles and export oil prices were up $5 at $695 per tonne.

($1 = 56.9700 roubles)

02.05.17

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