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Russia's wheat prices fall as new harvest progresses

Reuters

MOSCOW, July 22 (Reuters) - Russia's wheat export prices fell further last week due to the new crop reaching the market and modest demand from Egypt, the world's largest wheat importer, SovEcon agriculture analysts said on Monday.

Russia, one of the world's key wheat exporters, had harvested 24 million tonnes of wheat from a third of its planted area as of July 19. It hopes to increase the crop by one third to no less than 50 million tonnes after last year's drought.

SovEcon said Russia's export prices for milling wheat with 11.5 percent protein content were down $2 at $246-251 per tonne FOB (free on board) in deep-water ports last week.

It pegged prices in shallow-water ports down $1 at $230-233 per tonne on the same basis.

The drop in Russian wheat was in step with a modest decline of benchmark November milling wheat in Paris, which was down 0.64 percent at 193.25 euros ($250) a tonne by 1521 GMT.

Egypt's demand for wheat has picked up in recent weeks, albeit at a modest pace. It bought 300,000 tonnes of Romanian, Ukrainian and Russian wheat for shipment on Aug. 21-31.

The purchase was the state's third international tender since February and the first since the ouster of Islamist President Mohamed Mursi by the army on July 3.

Egypt's General Authority for Supply Commodities (GASC) last week bought 120,000 tonnes of Russian wheat at $247.66-248.95 per tonne with freight costs between $12.69-13.98.

Apart from Egypt, Russia sold wheat to long time clients such as Turkey, Iran and Iraq in recent weeks, analysts said on Monday and have increased wheat export expectations for July.

Export prices for crude sunflower oil were down $10 at $1,090-1,100 a tonne on a FOB basis, according to SovEcon.

Offer prices for new crop rapeseed fell 500 roubles to 11,800-12,300 roubles per tonne on excluding works (EXW) in the Stavropol region, it added.

($1 = 0.7611 euros)

22.07.13

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