IKAR in Mass Media

Russian wheat export prices mixed on strong rouble

19 июля 2016 года

Russian wheat export prices were flat last week, while the domestic prices fell due to the rouble strengthening against the dollar to its highest level since November, analysts said on Monday.

Black Sea prices for Russian wheat with 12.5 percent protein content and supply in July were at $165 a tonne on a free-on-board (FOB) basis at the end of last week, up $1 compared with a week earlier, Russian agricultural consultancy IKAR said.

Russia, a major global wheat exporter to North Africa and the Middle East, is harvesting the grain crop, which is expected to be the largest in its post-Soviet history.

Its farmers have already harvested 20.6 million tonnes of grain as of July 15 from 10 percent of the area and yields are so far higher than a year ago.

The country may harvest up to 110 million tonnes of grain this year, according to the agriculture ministry, up 2 million tonnes from the record crop of 2008.

However, the supply of wheat with 12.5 protein content, Russia's standard quality for export, remains low, SovEcon, another Moscow-based consultancy, said.

SovEcon quoted FOB wheat in the Black Sea area at $164.5 per tonne and barley prices at $148. IKAR pegged barley prices at $144, down $4.

Domestic prices for third-class wheat fell 700 roubles compared with the end of the week earlier to 10,000 roubles ($159) a tonne in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.

"The new large crop is hitting the market, while global benchmarks are near their multi-year lows," SovEcon said. Chicago September wheat ended last week down more than 2 percent, its fourth decline in the last five weeks.

Russia exported 583,800 tonnes of grains, including 383,500 tonnes of wheat, from July 1, when the new 2016/17 marketing year started, to July 13, the agriculture ministry said.

The pace of exports is up 35.5 percent on the year thanks to the earlier start of the harvesting campaign.

SovEcon also said domestic sunflower oil prices remained at 53,825 roubles a tonne and FOB Black Sea export prices were flat at $780 a tonne.

IKAR's white sugar price index for southern Russia was at $739 a tonne at the end of last week, up $5.43 from a week earlier.

Source: Reuters | #grain | Comments: 0 Views: 60

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