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Export prices for Russian wheat flat, demand from importers weak -analysts

03 мая 2023 года

MOSCOW, May 2 (Reuters) - Export prices for Russian wheat did not change much last week, while demand from major importers remains very weak, analysts said on Tuesday.

Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from the Black Sea at the end of May remained around $265 per tonne FOB.

"Demand remains weak, especially since one of our main importers, Sudan, has 'left' us," said Dmitry Rylko, head of the IKAR agricultural consultancy, referring to the violent conflict that broke out in the African country last month.

Russia has exported 1.4 million tonnes of wheat to Sudan in the 2022/23 season, a level it exceeded only once before, in 2017/18, he said.

Sovecon estimates total Russian wheat exports in April of 4.2 million tonnes, compared with a record for this month of 4.9 million tonnes. Russia exported 2.4 million tonnes in April 2022, the average for the month being 2.7 million tonnes.

The agency has decreased its Russian 2022/23 wheat export forecast to 44.4 million tonnes from 44.5 million tonnes, and the total grain and pulses forecast has been reduced from 55.9 to 55.5 million tonnes.

"The wheat export estimate has been cut due to sluggish sales, as Russian traders struggle to compete with other suppliers because of an unofficial price floor of $275 per tonne FOB. Current outstanding wheat sales account for only 1.7 million tonnes, compared to 2.2 million tonnes a month earlier," SovEcon noted. Last month, Reuters cited two sources as saying the government wanted exporters to ensure prices paid to farmers were enough to cover average production costs, which would mean keeping export prices for wheat at or above $275 to $280.

Other Russian data provided by Sovecon and IKAR:

Product:
Most recent data:
Change from week earlier

- Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon)
11,225 rbls/t
-25 rbls/t

- Sunflower seeds (Sovecon)
22,700 rbls/t
+125 rbls/t

- Domestic sunflower oil (Sovecon)
72,350 rbls/t
-2,000

- Domestic soybeans (Sovecon)
30,500 rbls/t
-150 rbls/t

- Export sunflower oil (IKAR)
$825/t
-$45/t

- White sugar, Russia's south (IKAR)
$729.52/t
+$18.91

Russia has no plans to halt wheat exports - sources

Source: Reuters | #grain | Comments: 0 Views: 9

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