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IKAR in Mass Media

Russia's wheat prices fall despite concerns over drought

08 июля 2013 года

MOSCOW, July 8 (Reuters) - Russia's wheat export prices fell last week despite concerns over drought and thanks to harvesting campaign progress which continues to increase supply, analysts said on Monday.

Forecasts for Russia's 2013 wheat crop were cut by two leading agricultural analysts on Monday citing drought in several growing regions and lower-than-expected yields in the first such downgrades this year.

Russia, traditionally the world's third largest wheat exporter, needs a good harvest to replenish stocks and to boost exports after drought last year slashed its wheat crop by a third.

Prices for wheat supplies with 12.5 percent protein content were down $5 to $245-$255 per tonne in the Black Sea on a free-on-board (FOB) basis and down $5 at $227 per tonne in the Azov Sea last week, the Institute for Agricultural Market Studies (IKAR) said in a note.

"Export activity is very active in shallow water ports of the Azov Sea, while it remains moderate in the Black Sea terminals, which continue to collect new-harvest grain," Dmitry Rylko, the head of IKAR added.

It quoted export prices for feed barley flat at $245 per tonne in deep-water ports and at $221 per tonne in shallow-water ports.

SovEcon agriculture analysts quoted export prices for milling wheat with 11.5-percent protein content in a band of $250-255 per tonne on a FOB basis in deep-water ports, down from $252-255 per tonne during the previous week. It pegged barley prices flat at $250 per tonne.

Last week Russian wheat lost out in a tender from Egypt's State grain buyer - the General Authority for Supply Commodities (GASC) - the world's largest wheat importer and the biggest importer of Russian wheat.

This loss was a negative signal for Russian farmers and competition will strengthen during subsequent tenders as Egypt goes through political turmoil, SovEcon said.

"It is likely that we will see activity involving countries whose wheat quality raised concerns from GASC previously - Ukraine and Kazakhstan, and will also possibly see new suppliers, like India," SovEcon said.

GASC last week bought 180,000 tonnes of Romanian and Ukrainian wheat in its first purchase since February, its longest absence from the world market in years.

The price for GASC's deal was between $249.83 and $253.88 per tonne with freight costs in a band of $10.50 and $14.69. The cheapest Russian origin was offered at $257.95 per tonne.

Meanwhile, buyers in Pakistan have in the past two weeks purchased around 250,000 tonnes of wheat from the Black Sea region, European traders said on Monday. Some of them said the lowest price was $279 a tonne c&f free out (CFFO)

As for oilseeds, domestic prices for sunflower seeds were down 25 roubles at 16,400 roubles per tonne, SovEcon said.

Export prices for crude sunflower oil were up $10 at $1,120-$1,130 a tonne on a free-on-board basis, according to SovEcon, while IKAR quoted domestic crude sunoil prices flat at $1,150-$1,159 per tonne.

Rapeseed prices in Russia's South were quoted at 13,500-14,000 roubles per tonne, IKAR added.

It pegged Russia's domestic white sugar prices up 200 roubles at 23,000 roubles per tonne.

Source: Reuters  |  #grain   |  Comments: 0   Views: 73

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