IKAR in Mass and Industry Media

Russian Wheat Prices Drop as Harvesting Set to Accelerate

Bloomberg

Russian prices for milling wheat extended their decline because dry weather and higher yields are helping farmers to boost supply from the new crop in the south, according to grain carrier ZAO Rusagrotrans.

The price for fourth grade milling wheat fell $3 to $244 a metric ton free-on-board at the country’s key grain export terminals in Novorossiysk today from a week earlier, Igor Pavensky, deputy director of Rusagrotrans’s strategic marketing department, said today by phone.

The price will probably drop further as the pace of harvesting is poised to increase, helped by a pause in rainfall in Russia’s south, which is the country’s key grain-growing area, Rusagrotrans said in an e-mailed statement. Rainfall since May delayed the start of harvesting this year to about June 23, which is 10 days later than last year, Dmitry Rylko, director at Moscow-based market researcher the Institute for Agricultural Market Studies, or Ikar, said July 8.

SovEcon, a market researcher, raised its forecast yesterday for grain exports by 2 million tons to 26 million tons in the 2014-15 season on better prospects for the harvest, according to Andrey Sizov, a director.

Rainfall and warm temperatures improved the condition of spring-planted crops in Russia’s European part, which may boost the country’s grain harvest to 94 million tons from the 90 million tons previously forecast, Sizov said today in a phone interview in Moscow.

17.07.14

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