IKAR in Mass and Industry Media

Russian wheat prices down slightly amid greater supply

Reuters

MOSCOW, Jan 30 (Reuters) - Russian wheat prices were down slightly last week as supplies remained high, analysts said on Monday, although concerns about winter crops lingered amid colder weather.

Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from Black Sea ports, were down $2 last week to $304 per tonne, the IKAR agriculture consultancy said.

Analysts flagged a downgrade in the 2023 crop forecast due to poorer weather conditions.

Russian grain transport company Rusagrotrans lowered its wheat harvest estimates for 2023 by 1 million tonnes to 81.5 million tonnes, citing crop damage due to temperature fluctuations.

"The formation of an ice crust pressed against the ground in a number of regions ... due to sharp temperature fluctuations increases the area of winter crops damage and reduces the yield of the remaining fields," Rusagrotrans analysts said.

Exports remained high. The Sovecon agriculture consultancy saw Russian wheat exports in January of up to 3.8 million tonnes, compared with an average for the period of 2.7 million tonnes.

Other Russian data provided by Sovecon and IKAR:

 Product:              Most recent data:     Change from week
                                                      earlier
 - Domestic 3rd class      12,425 rbls/t           -25 rbls/t
 wheat, European part                     
 of Russia, excludes                      
 delivery (Sovecon)                       
 - Sunflower seeds         26,800 rbls/t          +525 rbls/t
 (Sovecon)                                
 - Domestic sunflower      78,500 rbls/t          -500 rbls/t
 oil (Sovecon)                            
 - Domestic soybeans       32,600 rbls/t            unchanged
 (Sovecon)                                
 - Export sunflower             $1,130/t                 -$30
 oil (Sovecon)                            
 - White sugar,                $723.27/t              +$11.58
 Russia's south                           
 (IKAR)                                   

($1 = 69.90 roubles)

31.01.23

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