Russian wheat export prices halt multi-week decline
06 апреля 2023 года
MOSCOW, April 3 (Reuters) - Export prices for Russian wheat halted a multi-week decline as major Western traders said they would stop handling Russian grain exports, and following a report that Russia's agriculture ministry had issued unofficial guidance to support export prices.
International trading firms Cargill and Viterra last week announced they would no longer handle Russian grain exports from July 1. Louis Dreyfus Company joined them on Monday, saying that "grain export challenges continue to increase".
Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from Black Sea ports, were up $1 to $273 a tonne last week, the IKAR agriculture consultancy said.
"Chatter about an unofficial recommendation from Russian authorities to exporters not to sell wheat below $275-280/mt FOB was also supporting the prices," SovEcon analysts said in their weekly note.
Russia on March 24 cited two sources as saying the government wanted exporters to ensure prices paid to farmers were high enough to cover average production costs, which would mean keeping export prices for wheat at or above $275-280.
Russia exported 1.09 million tonnes of grain during the week to March 24, 970,000 tonnes of which was wheat, SovEcon said. That was compared with 1.16 tonnes of grain and the same 970,000 tonnes of wheat the previous week.
SovEcon raised its estimates of Russia's wheat exports in March to 4.5 million tonnes from 4.3 million tonnes, up from 2.1 million tonnes in March 2022 and the highest level for March since 2018.
Russia's agriculture minister reported that the rate of spring sowing is almost twice as high as last year: spring crops were sown an area of about 1 million hectares.
Other Russian data provided by Sovecon and IKAR:
- Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon)
- Sunflower seeds (Sovecon)
- Domestic sunflower oil (Sovecon)
- Domestic soybeans (Sovecon)
- Export sunflower oil (IKAR)
- White sugar, Russia's south (IKAR)
Russia has no plans to halt wheat exports - sources
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