IKAR in Mass and Industry Media

Russian wheat export prices, shipment volumes decreased last week

Reuters

MOSCOW, Nov 11 (Reuters) - Russian wheat export prices, as well as shipments, fell last week due to subdued international demand and amid new export rules aimed at preventing price spikes in the domestic market, analysts said.

According to Dmitry Rylko, head of the IKAR consultancy, the price of Russian wheat with 12.5% protein, scheduled for free-on-board (FOB) delivery in December, was down $4 to $228 per metric ton at the end of last week.

The Sovecon consultancy reported that prices for Russian wheat with the same protein content were $231-$234 per ton, down from $235-$240 the previous week.

"The reason (for the decrease) is still relatively high supply pressure versus very limited demand, as buyers continue to digest new industry export rules and guidelines," Rylko said.

The Russian Grain Exporters and Producers Union, an influential lobby that claims to represent firms exporting 80% of Russian grain, advised its members not to use foreign intermediaries at international grain tenders.

Sources told Reuters earlier that the Agriculture Ministry also advised exporters not to sell wheat at prices below a certain level.

New rules on Russia's wheat exports inadvertently helped Ukraine secure lucrative sales to Egypt's GASC last week while also inflating prices for the world's top importer, traders have said.

Russia's weekly grain exports are estimated at 0.77 million tons, down from 1.19 million tons the previous week, including 0.72 million tons of wheat, down from 1.12 million tons, Sovecon said.

The agency forecasts grain exports in November at 3.7-4.1 million tons, above the 3.2 million tons recorded a year ago.

According to the ministry, 128 million tons of grain had been harvested by the end of last week, while the forecast for this year's crop of 130 million tons in net weight has been confirmed.

As of Nov. 1, winter grains were sown on 16.8 million hectares, compared to 18.0 million hectares in 2023. The government recommended that the sowing area for the 2025 harvest should not be lower than in the previous year.

Russia’s southern regions received more rain this week, gradually improving crop conditions, Sovecon said.

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)
15,500 rbls/t
+100 rbls/t

- Sunflower seeds (Sovecon)
38,000 rbls/t
+400 rbls/t

- Domestic sunflower oil (Sovecon)
100,175 rbls/t
+2,500 rbls/t

- Domestic soybeans (Sovecon)
42,050 rbls/t
+250 rbls/t

- Export sunflower oil (IKAR)
$1,135/t
+$25

- White sugar, Russia's south (IKAR)
$601.61/t
-$6.51/t

11.11.24

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