IKAR in Mass and Industry Media

Russian wheat prices slightly down last week, before grain deal decision

Reuters

July 17 (Reuters) - Export prices for Russian declined slightly last week, prior to Russia's decision to suspend participation in the grain deal, amid high export pace, analysts said.

Russia has suspended its participation in the Black Sea grain export deal, the Kremlin said on Monday. It had been extended several times, but was due to expire today. Russia had been saying for months that conditions for its extension had not been fulfilled.

According to the IKAR agriculture consultancy, the price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in August was $228 a tonne at the end of last week, down from $231 a tonne the week before.

The Russia-focused agricultural consultancy Sovecon estimates for total Russian wheat exports in July at 4.2 million tonnes, compared to 2.5 million tonnes in June 2022 and 2.8 million tonnes on average.

Russia exported 960,000 tonnes of grain last week compared to 940,000 tonnes a week earlier, including 780,000 tonnes of wheat compared to 750,000 tonnes a week earlier, Sovecon wrote in its weekly note, citing port data.

The harvest is lagging amid persistent rains, Sovecon noted. Wheat harvest totalled 7.3 million tonnes (12.6 million tonnes а year before) from 1.9 million hectares (3.0 million hectares). This accounts for 6% of the total area, the lowest number since 2016.

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)
13,375 rbls/t
+425 rbls/t

- Sunflower seeds (Sovecon)
23,600 rbls/t
+1,200 rbls/t

- Domestic sunflower oil (Sovecon)
67,675 rbls/t
+2,350 rbls/t

- Domestic soybeans (Sovecon)
33,650 rbls/t
+250 rbls/t

- Export sunflower oil (IKAR)
$830/t
+$10

- White sugar, Russia's south (IKAR)
$694.61/t
+$15.08

17.07.23

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