IKAR in Mass and Industry Media

Russian wheat export prices rose further last week, volumes also high

Reuters

MOSCOW, June 26 (Reuters) - Russian wheat export prices rose for the second week in a row last week along with global markets, while the pace of exports also accelerated, analysts said.

The price of Russia's new wheat crop with 12.5% protein content, delivered free on board (FOB) from the Black Sea in July, was assessed at the end of last week at $231 a tonne compared to $228 a tonne the previous week by the IKAR agriculture consultancy.

On Monday, the forwards for the new crop were already seen as higher - about $235 a tonne, said Dmitry Rylko, head of the agency.

The Russia-focused agricultural consultancy Sovecon raised the estimate for total Russian wheat exports in June by 200,000 tonnes to 3.2 million tonnes, compared to 1.0 million tonnes in June 2022 and 1.4 million tonnes on average.

Russia exported 1.0 million tonnes of grain last week compared to 680,000 tonnes a week earlier, including 970,000 tonnes of wheat compared to 560,000 tonnes a week earlier, Sovecon wrote in its weekly note, citing port data.

As of June 22, farmers had sown 30.5 million hectares of grains compared to 29.1 million hectares in 2022, including 13.8 million hectares of wheat. Spring sowing is almost completed. Weather conditions are improving for spring wheat, Sovecon noted.

The harvesting campaign has started in the south. As of June 22, farmers had harvested 300,000 tonnes of grain in bunker weight compared to 449.000 tonnes in 2022, Sovecon said.

The wheat harvest was 21,000 tonnes. A year ago, wheat harvesting had not yet started.

"(Domestic) wheat prices went sharply up, supported by higher bids in ports. The demand from exporters remains strong both in the south, near the main export terminals, and in non-southern regions... Strengthening domestic grain market is one of the reasons why we think that Russian FOB could continue to increase short-term," Sovecom analysts said in the note.

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)
11,900 rbls/t
+675 rbls/t

- Sunflower seeds (Sovecon)
20,300 rbls/t
-300 rbls/t

- Domestic sunflower oil (Sovecon)
64,350 rbls/t
+675 rbls/t

- Domestic soybeans (Sovecon)
30,100 rbls/t
+475 rbls/t

- Export sunflower oil (IKAR)
$780/t
+$20/t

- White sugar, Russia's south (IKAR)
$729.58/t
+$0.66

Russia has no plans to halt wheat exports - sources

29.06.23

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