IKAR in Mass and Industry Media

Russian wheat prices jump after steep cuts to USDA forecast

Reuters

MOSCOW, Aug 16 (Reuters) - Russian wheat prices rose sharply last week, tracking price growth in Chicago Wv1 and Paris BL2Z1 on worries over global supply, analysts said on Monday.

The concerns were inflated after the U.S. Department of Agriculture (USDA) cut its forecast for the 2021/22 global wheat crop last week, citing poor weather in producers including Russia, the world's largest wheat exporter.

Russian wheat with 12.5% protein loading from Black Sea ports for supply in August was $287 a tonne free on board (FOB) at the end of last week, up $20 from the previous week, the IKAR agriculture consultancy said in a note.

Another consultancy, Sovecon, recorded an $18 rise to $286 a tonne, adding that barley was up $12 at $245.

"It was a perfect storm," said IKAR head Dmitry Rylko. "The most recent USDA report caused a sharp rise in international wheat values, including Russia's."

The USDA cut its estimate for Russia's 2021 wheat crop by 12.5 million tonnes to 72.5 million tonnes.

Other Russian data provided by Sovecon and IKAR:

Product:
Price at the end of last week:
Change from week earlier

- Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon)
14,350 roubles/t
($195.49) +900 rbls

- Sunflower seeds (Sovecon)
37,825 rbls/t
unchanged

- Domestic sunflower oil (Sovecon)
94,325 rbls/t
+2,000 rbls

- export sunflower oil (IKAR)
$1,245/t
+$15

- soybeans (Sovecon)
49,400 rbls/t
+2,000 rbls

- white sugar, Russia's south (IKAR)
$584.5/t
+$10.5

($1 = 73.4050 roubles)

23.08.21

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