• IKAR in Mass Media

 

 → IKAR in Mass Media → #3654

IKAR in Mass Media

Russian wheat export prices up for second week in a row, no increase in volumes

14 ноября 2023 года

Nov 13 (Reuters) - Russian wheat export prices have risen for the second week in a row as global markets strengthened slightly, but shipments have yet to pick up significantly.

The price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in late December was $230 per metric ton last week, up from $226 in the previous week, the IKAR agriculture consultancy reported.

The Sovecon agriculture consultancy saw the price for the same class of wheat last week at $230-236 per ton FOB, up $4 from the week before.

"Russian export market was a mixed bag. FOB values rose noticeably but export sales started to increase predicting a recovery in exports", the agency noted.

"We expect to see Russian FOB flat or higher. Current values are still more than $10 per metric ton below Eastern EU offers". According to the Russian Grain Union, the pace of grain shipments from Russia has decreased in recent weeks.

Arkady Zlochevsky, head of the Union, attributed this to the restrictive policy of the Russian Ministry of Agriculture, citing, according to the existing information on the market, the recommended price floor of the FOB export price of wheat at $250 per ton. In addition, the downtime of ships in the Kerch Strait due to increased inspection during the passage under the Crimean Bridge is also affecting export volumes, he said.

"As a result, we are back to the discount (in the price of Russian wheat to competing supplies): the country is losing money, the farmers are losing money," he told a press conference in Moscow on Monday.

Last week the Russian Agriculture Ministry announced it has determined the quota for grain exports in the next year at 24 million metric tons within the export potential of 65 million tons in the 2023/24 season.

"The quota news could have provided some support to the market. However, in our view, the size of the quota is likely to have a negligible impact on exports, if any. Our estimate of wheat exports in February-June 2024 is 18 million tons," Sovecon analysts noted.

Russia exported 0.89 million tons of grain last week, down from 0.90 million tons the week before, including 0.74 million tons of wheat, compared with 0.76 million tons the previous week, Sovecon wrote, citing port data.

Its estimate of wheat exports in November at 4.0 million tons, compared with 4.3 million tons a year ago and 3.5 million tons on average.

The wheat harvest as of Nov. 9 totalled 94.3 million tons versus 105.0 million tons а year earlier, from 29.0 million hectares planted versus the previous year's 29.2 million.

The average yield came in at 3.25 tons per hectare, against 3.59 tons per hectare a year before.

Sowing of winter grains was carried out on an area of 18.3 million hectares, up from 17.5 million hectares a year earlier, Sovecon wrote.

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)
12,450 rbls/t
-25 rbls/t

- Sunflower seeds (Sovecon)
22,525 rbls/t
+250 rbls/t

- Domestic sunflower oil (Sovecon)
73,350 rbls/t
-650 rbls/t

- Domestic soybeans (Sovecon)
35,100 rbls/t
+500 rbls/t

- Export sunflower oil (IKAR)
$800/t
+20 rbls/t

- White sugar, Russia's south (IKAR)
$630.91/t
+8.39 rbls/t

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

There are no comments yet. Be the first!

Only authorized users can comment.