IKAR in Mass and Industry Media

Russian wheat export prices saw further gains last week with record shipments

Reuters

Aug 14 (Reuters) - Russian wheat export prices extended gains last week amid ongoing geopolitical tensions, with record weekly shipments.

The price of 12.5%-protein Russian wheat scheduled for free-on-board (FOB) delivery at the beginning of September was $250 per metric ton last week, up from $248 a week earlier, the IKAR agriculture consultancy reported.

"There are rumours that the Russian Ministry of Agriculture wants to revise its unofficial wheat price floor to $260 (per ton) FOB", Sovecon wrote in the weekly note.

There were rumours of a similar revision on the market in June, but with a price floor at 240 per ton FOB.

The Russia-focused agricultural consultancy Sovecon estimates total Russian wheat exports in August at 4.8 - 5.1 million metric tons, compared to 3.5 million tons in August 2022 and a historic average of 4.7 million tons for the month of August.

Russia exported 1.26 million tons of grain last week compared to 1.23 million tons a week earlier, including 1.19 million tons of wheat compared to 990,000 tons a week earlier, Sovecon wrote in its weekly note, citing port data. This is the highest weekly wheat shipments volume since August 2021, it said.

The wheat harvest as of August 10 totaled 55.5 million tons (versus 61.3 million tons а year earlier) from 13.6 million hectares (versus 13.8 million hectares), with an average yield of 4.07 tons per hectare (4.43 tons per hectare).

This accounts for 46% of the total area. The yield remains substantially above the five-year average at 3.73 tons per hectare, and only below that of 2022 - 4.42 tones per hectare -and of 2017 - 4.28 tones per hectare.

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)
13,900 rbls/t
-25 rbls/t

- Sunflower seeds (Sovecon)
28,350 rbls/t
+500 rbls/t

- Domestic sunflower oil (Sovecon)
83,175 rbls/t
+4,150 rbls/t

- Domestic soybeans (Sovecon)
35,000 rbls/t
+400 rbls/t

- Export sunflower oil (IKAR)
$890/t
-$20

- White sugar, Russia's south (IKAR)
$585.94/t
-$53.86

14.08.23

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