IKAR in Mass Media

Russian wheat export prices fall further ahead of harvesting

28 июня 2016 года

MOSCOW: Russian wheat export prices fell further last week ahead of the start of a potentially record high harvest this year and amid a decline in global benchmarks, analysts said on Monday.

Russia, a major global wheat exporter to North Africa and the Middle East, is widely expected to harvest the largest wheat crop in its post-Soviet history this year. The harvesting starts in late June or early July.

Black Sea prices for Russian wheat with 12.5 percent protein content and supply in the second half of July were at $176 a tonne on a free-on-board (FOB) basis at the end of last week, down $5 from a week earlier, Russian agricultural consultancy IKAR said in a note.

SovEcon, another Moscow-based consultancy, quoted FOB wheat prices in the Black Sea area for supply in July at $181.5 per tonne, down $5.

Prices for barley, the harvesting of which started last week, fell $2 to $160 per tonne, SovEcon said. However, it said that reports that the crop is of low quality - which could reduce the amount available for export - would support prices. IKAR pegged barley prices at $156 per tonne.

Russia exported 33.6 million tonnes of grains, including 24.3 million tonnes of wheat, between July 1, 2015 and June 22, 2016 the agriculture ministry said. The pace of grain exports was up 12 percent year on year.

IKAR estimated Russia's total wheat exports at 24.8 million tonnes in 2015/16, which ends on June 30.

The consultancy also raised its forecast for Russia's 2016 wheat output by 500,000 tonnes to 65 million tonnes.

Domestic prices for third-class wheat fell 575 roubles compared with the end of a week earlier to 11,600 roubles ($179) a tonne in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.

SovEcon also said average prices for sunflower seeds were down 500 roubles at 25,500 roubles a tonne. Domestic sunflower oil prices fell 350 roubles to 54,150 roubles a tonne, while FOB Black Sea export prices were down $10 at $795 a tonne.

Source: Reuters | #grain | Comments: 0 Views: 101

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