IKAR in Mass and Industry Media

Russian wheat export prices rise on weather risks to new crop

Reuters

MOSCOW, April 27 (Reuters) - Russian wheat export prices rose amid difficult weather conditions for the new crop in the south of the country, as well as higher prices on global markets, analysts said.

The price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in late May-early June was $212 a metric ton, up from $208 a ton the previous week.

The Sovecon agriculture consultancy pegged the same class of wheat at $213-216 a ton, up from $210 to $212 a ton FOB.

"If the Russian South gets rain, we expect to see at least a correction in Paris and Chicago shortly, which could be quite steep," Sovecon wrote in the weekly note.

Russia is the world's largest wheat exporter.

The Friday weather models showed precipitation in around a week covering a big part of Russia's south, they said.

"Cooler weather with rain could be very helpful to the new crop in the South which, despite challenging weather recently, doesn't look like a poor one."

Roman Vilfand, scientific head of the Russian Hydrometeorological Centre, said at a news conference on Friday that conditions for crops in Russia's Southern and North Caucasus federal districts were satisfactory but unfavourable in some areas, calling the situation with crops in the country "generally normal".

Russia saw its overseas supplies decline to 0.99 million tons of grain last week from 1.25 million tons the previous week. Exports included 1.07 million tons of wheat, the same as a week earlier, Sovecon wrote, citing port data.

Sovecon estimates wheat exports in April at a record-high of 4.6 million metric tons, compared with 4.4 million tons a year ago.

As of April 19, farmers had seeded 3.3 million hectares of grains compared to 3.8 million hectares in the same period in 2023. That included 0.6 million hectares of spring wheat, compared to 1.0 million last year, Sovecon wrote.

Other Russian data provided by Sovecon and IKAR:

Product:
Most recent data:
Change from a week earlier

- Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon)
12,100 rbls/t
+175 rbls/t

- Sunflower seeds (Sovecon)
25,675 rbls/t
+675 rbls/t

- Domestic sunflower oil (Sovecon)
72,850 rbls/t
-1000 rbls/t

- Domestic soybeans (Sovecon)
36,950 rbls/t
-700 rbls/t

- Export sunflower oil (IKAR)
$800/t
0

- White sugar, Russia's south (IKAR)
$653.42/t
+$15.73/t

27.04.24

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