IKAR in Mass Media

Russian wheat export prices up on Egypt's demand

25 октября 2016 года

Russian wheat export prices rose for the fifth consecutive week on continuing demand from Egypt, the world's largest wheat importer, analysts said on Monday. Egypt's state grain buyer acquired 120,000 tonnes of Russian wheat on October 20 in its third tender since the start of October. Black Sea prices for Russian wheat with 12.5 percent protein content were at $175 a tonne on a free-on-board (FOB) basis at the end of last week, up $1 from a week earlier, Russian agricultural consultancy IKAR said in a note.

SovEcon, another Moscow-based consultancy, quoted them at the same level. According to IKAR, prices for 12.5 percent protein content are currently equal to traditionally cheaper Ukrainian wheat prices with 11.5 percent protein because the latter has been supported by demand from India.

"Russian sales to India are unlikely because of phytosanitary limitations," Dmitry Rylko, the head of IKAR, added. Prices for Russian wheat with 12.5 protein content in the Azov Sea were up $2 to $154 per tonne, although this export channel has been mostly suspended due to shallow water, Rylko said.

Russia exported 11.8 million tonnes of grains, including 9.7 million tonnes of wheat, between July 1 and October 19, the agriculture ministry said. The pace of grain exports was down 4 percent year on year. As for domestic demand, the government reduced purchases from farmers for its stocks last week, when it bought 67,000 tonnes of grains, down from 90,700 tonnes in the previous week, SovEcon said.

The government plans to buy 600,000 tonnes of grain by the end of December, of which 484,400 tonnes have been already acquired since the start of 2016/17 marketing season on July 1. Domestic prices for third-class wheat were up 100 roubles week-on-week to 10,325 roubles ($166) a tonne in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.

New crop sunflower seed prices fell 400 roubles to 21,075 roubles per tonne, SovEcon said, while domestic sunflower oil prices dropped 250 roubles to 48,675 roubles and export oil prices were up $10 at $765 per tonne. IKAR's white sugar price index for southern Russia rose $25 last week to $601 a tonne as of October 21.

Source: Reuters | #grain | Comments: 0 Views: 112

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