IKAR in Mass Media

Russian wheat prices rise on stronger rouble

18 декабря 2019 года

Russian wheat prices rose last week against the backdrop of a strengthening rouble and rising domestic prices, while farmers continued to place a cap on sales, analysts said. Export demand remained strong last week, with Egypt's state grain buyer GASC buying 115,000 tonnes of Russian wheat in a tender on Tuesday, while Syria bought 200,000 tonnes.

Russia is the world's largest wheat exporter, while Egypt is the largest buyer of Russian wheat. Black Sea prices for Russian wheat with 12.5% protein content and December delivery were up $2 to $212 per tonne on a free on board (FOB) basis at the end of last week, agricultural consultancy IKAR said in a note.

SovEcon, another agricultural consultancy in Moscow, said wheat prices were up $0.5 to $213 per tonne. Barley remained at $188.50 per tonne.

Domestic prices for third class wheat in the European part of Russia rose 100 roubles to 11,750 roubles ($184.07) a tonne by the end of last week, SovEcon said. That price was on an ex-works basis, which excludes delivery costs. Russia exported 21.7 million tonnes of grain, including 18.9 million tonnes of wheat, between the start of the 2019/20 season on July 1 and Dec. 12, SovEcon said, citing government data. Total grain exports were down 15% from a year ago.

SovEcon said it forecast total grain exports in December, excluding exports to Iran, at 2.6 million tonnes, down 12% on the previous month. Exports of wheat are forecast to make up 2.2 million tonnes of this total. Russia is weighing up a new system for restricting grain exports to keep them at the level of its exportable surplus under “certain market conditions", Agriculture Minister Dmitry Patrushev told the Kommersant newspaper last week.

Sunflower seed prices rose by 700 roubles to 17,400 roubles a tonne due to stockpiles ahead of New Year celebrations, SovEcon said. “Some large exporters are also in the market looking for big lots," SovEcon added. Domestic prices for sunflower oil rose by 625 roubles to 43,300 roubles a tonne, while export prices rose by $15 to $720 per tonne, it added.

Source: Reuters | #grain | Comments: 0 Views: 45

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