IKAR in Mass and Industry Media

Russian wheat lower amid high supplies; grain deal talks begin

Reuters

MOSCOW, March 13 (Reuters) - Russian wheat prices continued to fall last week on the back of large supply volumes, analysts said, as talks on extending a landmark deal allowing the safe export of grain from Ukraine's Black Sea ports began in Geneva.

The United Nations-brokered Black Sea Grain Initiative is up for renewal on March 18, but Moscow has signalled it will only agree to an extension if restrictions affecting its own exports are lifted.

Talks between U.N. officials and Russian Deputy Foreign Minister Sergei Vershinin began on Monday.

Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from Black Sea ports, fell $2 to $290 a tonne last week, the IKAR agriculture consultancy said.

"Markets continue to descend against the background of big supply and rather limited demand," IKAR head Dmitry Rylko said.

Russia exported 1 million tonnes of wheat last week, up from 770,000 tonnes the week before, the Sovecon consultancy said, citing port data.

It estimates that Russia's wheat exports in March could reach 4.2 million tonnes, up from 2.1 million tons a year earlier and the highest level since March 2018.

Russia's sowing campaign began a few weeks ago. Weather conditions for the crop in Russia's south, a major wheat-growing area, have improved due to ample rainfall, Sovecon said.

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)
12,100 rbls/t
-50 rbls/t

- Sunflower seeds (Sovecon)
27,925 rbls/t
+175 rbls/t

- Domestic sunflower oil (Sovecon)
78,175 rbls/t

- Domestic soybeans (Sovecon)
33,600 rbls/t
+900 rbls/t

- Export sunflower oil (IKAR)
$990/t
-$30

- White sugar, Russia's south (IKAR)
$704.87/t
-$8

($1 = 75.27 roubles)

14.03.23

All viewing: 12
Discuss