IKAR in Mass and Industry Media

Russian wheat export prices stable for second straight week

Reuters

MOSCOW, April 10 (Reuters) - Export prices for Russian wheat remained stable for the second week in a row, with export volumes remaining high and a tacit lower price limit for shipments, analysts said.

Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from Black Sea ports in the first part of May, were $273 a tonne and unchanged from last week, the IKAR agriculture consultancy said.

Egypt's state grains buyer, the General Authority for Supply Commodities (GASC), said on Thursday it bought 600,000 tonnes of Russian wheat in an international tender.

"The unofficial price floor suggested by Russian authorities seems to work. During the GASC tender, no one offered Russian wheat below $275 FOB," SoveCon analysts noted.

Last month, Russia cited two sources as saying the government wanted exporters to ensure prices paid to farmers were high enough to cover average production costs, which would mean keeping export prices for wheat at or above $275-$280.

Russia exported 1.1 million tonnes of grains during the week ended April 7, of which 930,000 tonnes were wheat, SovEcon said. That was compared with 1.09 million tonnes of grain and 970,000 tonnes of wheat the previous week.

The first estimate of wheat exports in April is 4.2 million-4.5 million tonnes, which is close to an all-time high of 4.9 million tonnes, SovEcon said.

Russia is considering raising its base price for calculating the wheat export tax to 17,000 roubles ($212.23) per tonne from 15,000 roubles per tonne, the Vedomosti daily reported last week, citing two unnamed sources in exporting companies. The move would reduce the rate for export shipments and is being considered by the agriculture ministry.

Russia's agriculture ministry on Friday sets its grain harvest plan for 2023 at 120 million tonnes.

State weather forecaster Hydrometcentre in April called the conditions for winter crops and spring sowing work as "satisfactory" for both the European and Asian parts of Russia.

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)
11,475 rbls/t
-75 rbls/t

- Sunflower seeds (Sovecon)
21,675 rbls/t
+600 rbls/t

- Domestic sunflower oil (Sovecon)
74,000 rbls/t
+1,000 rbls/t

- Domestic soybeans (Sovecon)
30,475 rbls/t

- Export sunflower oil (IKAR)
$870/t
+$45

- White sugar, Russia's south (IKAR)
$700.38/t
-$7.88

Russia has no plans to halt wheat exports - sources

11.04.23

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