• IKAR in Mass Media

Where the margin is 2025
July 17-18, Moscow

 → IKAR in Mass Media → #3737

IKAR in Mass Media

Russian wheat export prices decline further after yield data

25 июня 2024 года

MOSCOW, June 24 (Reuters) - Russian wheat export prices continued to decline last week amid data on high yields at the start of the harvesting campaign in Russia, analysts said.

Russian wheat export prices decline further after yield data

The price of 12.5% protein Russian new crop wheat scheduled free-on-board (FOB) with delivery in July was $231 per metric ton at the end of last week, $3 lower than the price a week earlier, according to the IKAR consultancy.

Sovecon determined the price of wheat with a protein content of 12.5% with the nearest delivery at $234-236 a ton at the end of last week, down from $244-$248 a ton FOB.

Agricultural consultancy Sovecon said early yield data had supported a bearish case for wheat, with Russia's agriculture ministry putting the average wheat yield at 5.2 tons a hectare from 12,000 hectares harvested, compared to around 4.5 tons a hectare a year ago.

"This year’s figure is misleading due to the early start of the harvest in the high-yielding Krasnodar region," Sovecon said however in the weekly note.

"Early information from farmers and local authorities indicates a patchy picture for starting yields".

Harsh frost did not have a significant impact on grain harvest volumes as Russia was able to reseed most of the affected farmland, Russian Agriculture Minister Oksana Lut said last week.

The ministry had kept it forecast of 132 million metric tons for the grain harvest in 2024, but said it might be adjusted later.

IKAR raised its forecast for Russia's wheat crop to 82 million metric tons from 81.5 million tons last week after specifying production by regions.

Russia has almost completed its sowing campaign and started harvesting the new crop in the southern regions of the country.

As of June 14, farmers had seeded 28.1 million hectares of grains, compared to 30.2 million hectares in the same period in 2023. That included 12.5 million hectares of spring wheat, compared to 13.7 million last year, Sovecon wrote.

Russia is the world's largest wheat exporter. Its exports increased to 0.83 million tons of grain last week from 0.80 million in the previous week.

Exports included 0.77 million tons of wheat, down from 0.78 million tons a week earlier, Sovecon wrote, citing port data.

Sovecon estimates wheat exports in June at 4.0 million tons, compared to 3.6 million tons in June 2023.

Other Russian data provided by Sovecon and IKAR:

 Product:              Most recent data:  Change from a week
                                                     earlier
 - Domestic 3rd class      14,350 rbls/t         -200 rbls/t
 wheat, European part                     
 of Russia, excludes                      
 delivery (Sovecon)                       
 - Sunflower seeds         32,025 rbls/t         -225 rbls/t
 (Sovecon)                                
 - Domestic sunflower      76,850 rbls/t       -1,325 rbls/t
 oil (Sovecon)                            
 - Domestic soybeans       39,875 rbls/t         -575 rbls/t
 (Sovecon)                                
 - Export sunflower               $920/t                -$10
 oil (IKAR)                               
 - White sugar,                $725.83/t           +$22.96/t
 Russia's south                                             
 (IKAR)                                   

Source: Reuters  |  #grain   |  Comments: 0   Views: 33

There are no comments yet. Be the first!

Only authorized users can comment.