IKAR in Mass and Industry Media

Russian wheat export prices rise further as weather hampers shipments

Reuters

MOSCOW, Dec 11 (Reuters) - Export prices for Russian wheat rose further last week as the situation with shipments from ports remained difficult due to difficult weather conditions, analysts say.

The price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in January was $241 per metric ton, up $5 from the previous week, the IKAR agriculture consultancy reported.

The Sovecon agriculture consultancy pegged the same class of wheat at $237-241 a ton FOB last week compared to $236-239 the week before.

According to the head of IКAR, Dmitry Rylko, market participants are set for an increase, including the need for more expensive grain supplies from northern regions.

In addition, ongoing supply issues due to inclement weather are impacting prices.

"The weather in December will be far from optimal and the colossal volumes that have accumulated over November will be difficult for us to load," said Rylko, suggesting that it would take months to clear the accumulated volumes.

Russia exported 0.69 million tons of grain last week, up from 0.45 million tons the previous week. The exports included 0.61 million tons of wheat, compared with 0.37 million tons the previous week, Sovecon wrote, citing port data.

Its first estimate of wheat exports in December is 4.0-4.4 million tons, compared with 4.1 million tons a year ago.

Egypt's GASC has resumed buying tenders, with the latest one last week resulting in the purchase of 420,000 tons of Russian wheat at $265 per tonne FOB for January shipment.

Harvesting of the 2023 crop is almost complete.

Sowing of winter grains was carried out on an area of 18.6 million hectares, up from 17.7 million hectares last year, Sovecon wrote.

The state of winter crops in Russia is better on average than last year, with only 4% in poor and thinned condition, a meteorological official said.

The Russian Federation began on Monday state purchase interventions announced for this year. At the end of the first auction 15,930 tons of grain were sold. The Ministry of Agriculture earlier announced its intention to purchase up to 2 million tons of grain for the intervention fund.

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)
12,550 rbls/t
+50 rbls/t

- Sunflower seeds (Sovecon)
25,175 rbls/t
+300 rbls/t

- Domestic sunflower oil (Sovecon)
73,675 rbls/t
-825 rbls/t

- Domestic soybeans (Sovecon)
36,100 rbls/t
+200 rbls/t

- Export sunflower oil (IKAR)
$810/t
-$10/t

- White sugar, Russia's south (IKAR)
$618.99/t
-$30.14/t

12.12.23

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