IKAR in Mass and Industry Media

Russian wheat export prices up last week, supply tightens

Reuters

MOSCOW, Dec 16 (Reuters) - Russian wheat export prices rose last week while export volumes fell, analysts said on Monday, noting some farmers were postponing sales to try to minimise their taxes, while weather conditions in Black Sea and Sea of Azov ports were difficult for navigation.

Dmitry Rylko, head of the IKAR consultancy, said the price of Russian wheat with 12.5% protein for free-on-board (FOB) delivery in late December to early January increased by $6 to $234 per metric ton.

The Sovecon consultancy said prices for Russian wheat with the same protein content and delivery terms were $227 to $232 per ton, compared with $225 to $229 the previous week.

Sovecon noted that farmers were reluctant to sell at the end of the year and were deferring sales to next year to minimise their tax costs.

Weekly grain exports were estimated at 0.97 million metric tons, including 0.92 million tons of wheat, down from 1.08 million tons of grain and 1.01 million tons of wheat the previous week, according to Sovecon.

Exports are further complicated by stormy weather in the Black Sea and the Sea of Azov in December. Two Russian tankers spilled oil into the Kerch Strait, which separates mainland Russia from Crimea, after sustaining serious damage during a heavy storm on Dec. 15.

The Kerch Strait is a key export route for Russian grain and fuel products.

Sovecon estimates December wheat exports at 3.5 million tons, compared to 3.6 million tons a year ago. IKAR estimates December wheat exports at 3.6 to 3.8 million tons, down from 4.4 million tons in November.

According to Russia's flagship grain rail carrier, Rusagrotrans, wheat exports in December are estimated at 3.4 to 3.5 million tons, of which about 1.7 million tons have already been shipped.

Sowing of grain crops for the 2025 harvest has been completed. Winter grains were sown over 17.6 million hectares, down 1 million hectares from last year. Final sowing area numbers will be released next year, Sovecon said.

Snow cover in winter wheat regions remains thin, with temperatures forecast to remain above average, the agency 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)
15,625 rbls/t
-75 rbls/t

- Sunflower seeds (Sovecon)
39,725 rbls/t
-200 rbls/t

- Domestic sunflower oil (Sovecon)
104,350 rbls/t
-825 rbls/t

- Domestic soybeans (Sovecon)
40,050 rbls/t
-550 rbls/t

- Export sunflower oil (IKAR)
$1,100/t
-$10

- White sugar, Russia's south (IKAR)
$570.60/t
-$3.29/t

16.12.24

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