IKAR in Mass and Industry Media

Russian wheat export prices down as shipments increase

Reuters

MOSCOW, Feb 5 (Reuters) - Russian wheat export prices continued to decline last week, still under pressure from oversupply, while shipments rose to a four-month high after better weather at ports, analysts said.

Russian wheat export prices down as shipments increase

The price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in March was $228 a metric ton, down $7 from the previous week, the IKAR agriculture consultancy reported.

The Sovecon agriculture consultancy pegged the same class of wheat at $232-238 a ton FOB, compared with $238-242 a week ago.

"Russia’s FOB is seen flat or lower. With current prices for EU wheat, it’s not easy for Russian firms to find new business," Sovecon analysts said in a weekly note.

Russia exported 1.29 million tons of grain last week, up from 0.83 million tons the previous week. The exports included 1.03 million tons of wheat (0.63 million tons a week ago), Sovecon wrote, citing port data.

"This is the highest weekly volume since September 2023. With modest outstanding sales, this is probably not an indication of strong export demand but just cleaning of the backlog exporters had because of the weather," Sovecon said.

The consultancy expects January wheat exports will reach 3.6 million tons, down from 3.9 million tons a year earlier.

Abnormally warm weather in all regions of Russia is becoming a problem for the new crop, it warned.

"Weather conditions are deteriorating. Even with no weather anomalies, this could lower yield potential while a cold snap after such abnormal warmth could lead to a noticeable winter kill," Sovecon warned.

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)
12,375 rbls/t
-25 rbls/t

- Sunflower seeds (Sovecon)
23,725 rbls/t
+100 rbls/t

- Domestic sunflower oil (Sovecon)
70,175 rbls/t
-75 rbls/t

- Domestic soybeans (Sovecon)
35,000 rbls/t
+100 rbls/t

- Export sunflower oil (IKAR)
$795/t
+$5

- White sugar, Russia's south (IKAR)
$642.80/t
-$9.13/t

06.02.24

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