IKAR in Mass and Industry Media

Russian wheat export prices rise slightly as shipments decline

Reuters

MOSCOW, Sept 23 (Reuters) - Russian wheat export prices edged up slightly last week, and analysts anticipate further gains as export volumes have slowed.

The price of 12.5% protein Russian new crop wheat scheduled free-on-board (FOB) with delivery in October was $217 per metric ton at the end of last week, up $1, Dmitry Rylko, head of IKAR consultancy said.

He emphasised that he expects prices to strengthen more significantly in November.

"The key factor for price dynamics now is that there is not much left for export in the South, it will be necessary to bring supplies from more remote regions, which will obviously be more expensive," Rylko said.

The Sovecon consultancy reported that prices for Russian wheat with the same protein content were unchanged at $217-$220 per ton.

Sovecon estimated Russia's September wheat exports at 4.8 million tons, compared to 4.9 million tons a year ago.

Weekly grain exports are estimated at 0.91 million tons, down from 1.06 million a week ago, including 0.84 million tons of wheat, down from 1.01 million.

The Ministry of Agriculture reported that, according to operational data, 78% of the area under cereals has been harvested nationwide, yielding 105.9 million tons of grain, including 77.7 million tons of wheat.

Due to challenging weather conditions, the pace of work is lagging in the Urals, Siberia and the Volga region. An emergency regime has been introduced in five regions due to soil overwatering.

As of Sept. 17, winter grains were sown across 7.5 million hectares, compared to 7.9 million hectares in 2023. The planting campaign is catching up with the previous year, Sovecon noted.

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)
14,675 rbls/t
-50 rbls/t

- Sunflower seeds (Sovecon)
33,475 rbls/t
+100 rbls/t

- Domestic sunflower oil (Sovecon)
83,175 rbls/t
+1,500 rbls/t

- Domestic soybeans (Sovecon)
36,875 rbls/t
+475 rbls/t

- Export sunflower oil (Sovecon)
$925/t
0

- White sugar, Russia's south (IKAR)
$583.60/t
-$4.7/t

23.09.24

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