IKAR in Mass and Industry Media

Russian wheat prices down as supplies remain high - analysts

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MOSCOW, Feb 6 (Reuters) - Russian wheat prices fell last week as a record harvest and record wheat stocks helped keep supplies high, analysts said on Monday.

Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from Black Sea ports, were down $7 last week to $297 per tonne, the IKAR agriculture consultancy said.

"Demand is quite stagnant, while the world continues to consider Russian wheat reserves as endless," said IKAR head Dmitry Rylko.

Egypt bought 535,000 tonnes of Russian wheat at $303-305 per tonne FOB in an auction last week, the Sovecon consultancy said, a price notably lower than its previous purchase.

Russian wheat exports were close to record levels in January. Sovecon estimates that Moscow exported up to 3.8 million tonnes of wheat last month, compared with an average for the month of 2.7 million tonnes.

In total, Russia may export 30-35 million tonnes of grain in the second half of the 2022/23 agricultural year, according to the agricultural ministry.

Weather conditions continue to affect this year's crop estimates. IKAR has lowered its preliminary wheat crop estimate to 84 million tonnes from 87 million tonnes.

Sovecon is maintaining its forecast at 86 million tonnes for now, but notes that dry weather is becoming an increasing problem for the crop in the south.

Other Russian data provided by Sovecon and IKAR:

Product:
Most recent data:
Change from week earlier

- Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon)
12,600 rbls/t
+175 rbls/t

- Sunflower seeds (Sovecon)
28,150 rbls/t
+1,350 rbls/t

- Domestic sunflower oil (Sovecon)
78,750 rbls/t
+250 rbls/t

- Domestic soybeans (Sovecon)
33,600 rbls/t
+1,000 rbls/t

- Export sunflower oil (Sovecon)
$1,160/t
+$30

- White sugar, Russia's south (IKAR)
$722.44/t
-$0.83

($1 = 70.68 roubles)

06.02.23

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