IKAR in Mass Media

Weaker rouble, restored Turkey trade pressure Russian wheat prices

10 мая 2017 года

MOSCOW, May 10 (Reuters) - Russian wheat export prices fell last week as the rouble weakened against the dollar and Moscow and Ankara agreed to restore Russian wheat supplies to Turkey, analysts said on Wednesday.

Russia said on May 3 it would resume grain exports to Turkey "within the next few days" after resolving issues with Ankara, traditionally the second largest buyer of Russian wheat after Egypt. Turkey had restricted supplies since mid-March.

Black Sea prices for Russian wheat with 12.5 percent protein content were at $184 a tonne on a free-on-board (FOB) basis at the end of last week, down $2 from a week earlier, Russian agricultural consultancy IKAR said.

SovEcon, another Moscow-based consultancy, quoted FOB wheat prices in the Black Sea area at $184.50 per tonne, down $1.50.

The consultancies pegged prices for the new crop for July-August delivery at $172.50 and $171 per tonne, respectively.

"The price decline in the domestic prices, possible reopening of the Turkish market and the rouble weakening may support sales and the pace of exports in May-June," SovEcon said. The trading activity was thin due to long May holidays in Russia last week but it will be restored this week, it added.

Russia exported 30.9 million tonnes of grain, including 23.9 million tonnes of wheat, between July 1 and May 3, the agriculture ministry said, up 0.6 percent year-on-year.

Domestic prices for third-class wheat fell 75 roubles compared with the end week earlier to 9,225 roubles ($159.5) a tonne in the European part of Russia on an ex-works basis, SovEcon said. Ex-works supply excludes delivery costs.

As of May 5, farmers had sown spring grains on 25 percent of the planned area, or on 7.7 million hectares, according to the agriculture ministry.

The sowing campaign is still slower than a year ago but the gap has narrowed in the last week due to favourable weather, SovEcon said. The weather is also expected to support the pace of sowing this week.

Sunflower seed prices fell by 75 roubles to 16,900 roubles per tonne, SovEcon said, while domestic sunflower oil prices lost 50 roubles to 39,675 roubles and export oil prices remained at $695 per tonne.

IKAR's white sugar price index for southern Russia fell $6 to $566 a tonne as of May 5.

($1 = 57.8377 roubles)

Source: Reuters | #grain | Comments: 0 Views: 56

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