IKAR in Mass and Industry Media

Russian wheat export prices continue dip, bucking global trend

Reuters

Sept 18 - Russian wheat export prices continued to decline last week, bucking a global rally, amid weak demand from exporters and domestic buyers.

The price of 12.5%-protein Russian wheat scheduled for free-on-board (FOB) delivery in October was $235 per metric ton last week, down from $240 earlier, the IKAR agriculture consultancy reported.

The Sovecon agriculture consultancy sees the price for this class of wheat at $244-246 per ton FOB, down $3 on a week before.

Russian attacks on Ukrainian ports on the River Danube, alongside Ukrainian strikes on the Crimean peninsula, have so far failed to affect prices.

"The Black Sea remains off the market radar. However, the region remains volatile," SovEcon said in a note.

SovEcon estimated September's monthly grain export volume at 4.9 million tons versus 4.2 million last year.

Russia exported 1.28 million tons of grain last week compared to 1.22 million tons a week earlier, including 1.24 million tons of wheat, compared with 1.03 million tons a week earlier, Sovecon wrote in its weekly note, citing port data. It is the highest such figure since Aug. 2021.

The wheat harvest as of Sept. 15 totalled 82.2 million tons (versus 95.9 million tons а year earlier) from 22.6 million hectares (versus 25.7 million hectares), with an average yield of 3.65 tons per hectare (3.74 tons per hectare).

Sowing of winter grains was carried out on an area of 7.5 million hectares, up from 7.3 million hectares a year earlier, Sovecon wrote.

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)
13,500 rbls/t
-250 rbls/t

- Sunflower seeds (Sovecon)
22,875 rbls/t
-2,150 rbls/t

- Domestic sunflower oil (Sovecon)
78,000 rbls/t
-2,675 rbls/t

- Domestic soybeans (Sovecon)
33,400 rbls/t
-400 rbls/t

- Export sunflower oil (IKAR)
$725/t
-$70

- White sugar, Russia's south (IKAR)
$618.76/t
+$12.85

19.09.23

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