IKAR in Mass and Industry Media

Russian wheat prices hit five-month high

Reuters

MOSCOW, Oct 21 (Reuters) - Export prices for Russian wheat last week hit their highest level in five months thanks to strong demand and growth in global benchmarks in Chicago, analysts said on Monday.

Egypt's state grain buyer GASC bought 285,000 tonnes of Russian wheat, 60,000 tonnes of French wheat and 60,000 tonnes of Ukrainian wheat in its tender last week.

Black Sea prices for Russian wheat with 12.5% protein content and for the nearest supply were up $8 to $207 per tonne on a free on board (FOB) basis at the end of last week, agricultural consultancy IKAR said in a note.

SovEcon, another agricultural consultancy in Moscow, pegged wheat prices at $205 per tonne, up $7.5.

"This is the highest level since May," SovEcon said. Barley rose $2 to $181 a tonne.

IKAR also said it had raised its forecast for the Russian wheat crop this year by 200,000 tonnes to 75.8 million tonnes. It now expects the grain crop at 123.4 million tonnes.

Russia has exported 15.6 million tonnes of grain since the start of the 2019/20 season, 11% less than in the same period the previous year, SovEcon said. That figure included 13.5 million tonnes of wheat.

Prices for third-class wheat in European parts of Russia rose 175 roubles to 10,700 roubles ($168) a tonne on the domestic market by the end of last week, SovEcon said. That price was on an ex-works basis, which excludes delivery costs.

Russian farmers have already sown winter grains for next year's crop on 94% of the planned area, or 16.5 million hectares.

Sunflower seed prices fell further with the arrival of the new crop, sliding 550 roubles to 16,025 roubles a tonne, while domestic sunflower oil prices fell by 1,000 roubles to 42,000 roubles a tonne, SovEcon added. FOB export prices for sunflower oil were steady at $675 a tonne.

IKAR said its price index for white sugar from southern Russia fell by $12 to $312.5 a tonne.

($1 = 63.6555 roubles)

21.10.19

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