IKAR in Mass and Industry Media

Russian prices for high quality wheat rise

Business Recorder

Russian prices for high quality wheat rose last week due to a shortage of supply, analysts said on Monday, signalling problems for exporters needing globally competitive price levels. Russia, the world's fifth-largest wheat exporter, hopes to increase exports following a better harvest than last year, when drought reduced the crop, but the quality is poor and there is not enough third class milling wheat.

"Domestic prices for third class wheat in the European part of Russia rose slightly last week, reacting to problems in sourcing high quality wheat," Dmitry Rylko, the head of the Institute for Agricultural Market Studies (IKAR), said. Russia's wheat prices are also being supported by concerns over delays in harvesting in some regions, due to rain, and in sowing of winter grains for next year's crop.

Russia is expected to boost the 2013 wheat harvest by one-third to 50 million tonnes, of which 43 million tonnes has already been harvested. Its grains exports are officially expected to rise 25 percent to 20 million tonnes, of which 7.2 million tonnes of grains, including 6.1 million tonnes of wheat, have been shipped between the July 1 start of the 2013/14 year and September 10.

18.09.13

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