IKAR in Mass Media

Export prices for Russian wheat continue to decline on sluggish demand - IKAR

17 мая 2023 года

MOSCOW, May 15 (Reuters) - Export prices for Russian wheat continued to decline last week amid low demand and weakening global markets, and stormy weather affected volumes, analysts said.

Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from the Black Sea in June, were $248 a tonne, down $6 from last week, the IKAR agriculture consultancy said.

"Demand is sluggish: everyone has bought indecent quantities this year, plus there are lots of places where a good harvest is expected," said Dmitry Rylko, head of IКAR.

The Russia-focused agricultural consultancy Sovecon estimates total Russian wheat exports in May at 3.8 million tonnes, compared to 1.2 million tonnes in May 2022 and 1.5 million tonnes on average.

Russia exported 0.76 million tonnes of grain last week compared to 1.14 million tonnes a week earlier, including 0.68 million tonnes of wheat compared to 1.06 million tonnes a week earlier, Sovecon wrote in its weekly note, citing port data. Stormy weather reduced exports to the lowest weekly volumes since early February.

Weather conditions in Russia continue to be generally favourable for the new harvest, Sovecon said. As of May 11, 14.4 million hectares of crops were sown, compared to 11.8 million hectares by that date in 2022, of which 5 million hectares were under spring wheat (3.5 million hectares in the same period of 2022). However, recent cold and wet weather has started to slow work in the fields in parts of the Centre and the South.

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)
11,125 rbls/t
-50 rbls/t

- Sunflower seeds (Sovecon)
22,150 rbls/t
-225 rbls/t

- Domestic sunflower oil (Sovecon)
71,500 rbls/t

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

- Export sunflower oil (IKAR)
$815/t
-$5/t

- White sugar, Russia's south (IKAR)
$794.68/t
+$18.7

Russia has no plan

s to halt wheat exports - sources

Source: Reuters | #grain | Comments: 0 Views: 7

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