IKAR in Mass Media

Russian wheat prices rise on strong demand and global crop issues

10 августа 2021 года

MOSCOW, Aug 9 (Reuters) - Russian wheat prices rose last week on strong demand from importers and domestic buyers as well as a worsening outlook for the global crop, analysts said on Monday.

Russian wheat with 12.5% protein loading from Black Sea ports for supply in August was $267 a tonne free on board (FOB) at the end of last week, up $13 from the previous week, the IKAR agriculture consultancy said in a note.

Another consultancy, Sovecon, recorded a $13 rise to $268 a tonne, adding that barley was up $9 at $233.

"Russian wheat rallied substantially in recent weeks. The rally is expected to slow down thanks to competition with the European Union and Ukraine," Sovecon said.

Exports from Russia were weak in July owing to delayed harvesting but are expected to speed up to between 4 million and 4.5 million tonnes in August, Sovecon said.

Domestic wheat prices also rose sharply last week on worsening prospects for this year's crop.

"Many traders and domestic buyers are short," Sovecon said. "Many sellers default on existing contracts leading to more panic buying."

Weather continues to improve for wheat in Siberia but is unlikely to help spring wheat in other regions, Sovecon said, adding that the outlook for corn (maize) and sunflower crops improved slightly after recent rains.

Other Russian data provided by Sovecon and IKAR:

 Product:            Price at the end       Change from week
                        of last week:                earlier
 - Domestic 3rd      13,450 roubles/t              +625 rbls
 class wheat,               ($183.04)  
 European part of                      
 Russia, excludes                      
 delivery                              
 (Sovecon)                             
 - Sunflower seeds      37,825 rbls/t              unchanged
 (Sovecon)                             
 - Domestic             92,325 rbls/t            +1,325 rbls
 sunflower oil                         
 (Sovecon)                             
 - export                    $1,230/t                   -$10
 sunflower oil                         
 (Sovecon)                             
 - export                    $1,230/t                   -$20
 sunflower oil                         
 (IKAR)                                
 - soybeans             47,400 rbls/t              unchanged
 (Sovecon)                             
 - white sugar,              $574.0/t                  +$1.2
 Russia's south                        
 (IKAR)                                
 ($1 = 73.4800 roubles)

Source: Reuters | #grain | Comments: 0 Views: 6

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