IKAR in Mass Media

Russian wheat prices fall on Egypt's policy over fungus

20 сентября 2016 года

Russian wheat export prices fell for the fourth week amid a continued stand-off between Moscow and Egypt, the world's largest buyer, after Cairo banned wheat with any ergot, a common grain fungus, analysts said on Monday. Moscow is seeking talks with Egypt after Cairo rejected Russian wheat shipments after reinstating a strict ergot policy, wreaking havoc on the country's grain purchases and baffling traders.

Black Sea prices for Russian wheat with 12.5 percent protein content for September delivery were $167 a tonne on a free-on-board (FOB) basis at the end of last week, down $1 from a week earlier, Russian agricultural consultancy IKAR said. "We are at depressively low levels because Egypt's stance has not changed," Dmitry Rylko, the head of the IKAR agriculture consultancy, said.

Egypt is the largest buyer of Russian wheat. SovEcon, another Moscow-based consultancy, quoted FOB wheat prices in the Black Sea area $2 down at $169.50 per tonne. Russia exported 7.5 million tonnes of grain, including 6.3 million tonnes of wheat, between July 1 and September 14, the agriculture ministry said. Grain exports were down 3 percent year on year.

Official customs data have lagged real supplies this year due to technical issues, analysts have said. Domestic prices for the third class rose by 100 roubles last week, from the previous week, to 10,200 roubles ($157) per tonne in the European part of Russia on an ex-works basis. Ex-works supply does not include delivery costs. However, prices for fourth class wheat fell for the second week in a row by 25 roubles to 9,100 roubles per tonne.

Prices for maize (corn) of the new harvest rose in the deep-water ports by 100 roubles to 9,900 to 10,100 roubles per tonne. New crop sunflower seed prices rose 150 roubles to 22,300 roubles per tonne, SovEcon added, while export prices for sunflower oil were unchanged at $760 per tonne. IKAR's white sugar price index for southern Russia fell $19 last week to $552 a tonne at the end of the week.

Source: Reuters | #grain | Comments: 0 Views: 100

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