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IKAR in Mass Media

Russian wheat prices fall on weak demand from Turkey

03 сентября 2013 года

In August, Russia's grain exports reached 3.4 million tonnes, including 3.0 million tonnes of wheat, IKAR said, citing preliminary data. It did not provide data for comparison.

(Reuters) - Russian wheat export prices fell in shallow-water ports last week due to weaker demand from Turkey, Russia's second-largest customer after Egypt, the Institute for Agricultural Market Studies (IKAR) said in a note.

IKAR quoted Russian Azov Sea export prices for wheat with 12.5 percent protein content at $220 per tonne last week, down $6. At deep-water ports, Black Sea wheat export prices were down $2 at $250 per tonne on a free-on-board basis.

"Azov Sea export prices have plunged ... mostly because of Turkish lira devaluation and weakened demand from this key market," IKAR said.

The lira hit record lows against the dollar several times last week due to concerns about the Turkish central bank's insistence that it would not raise rates further, even while the U.S. Federal Reserve is expected to start curbing monetary stimulus.

Expectations that U.S. rates could rise have caused a rout in emerging markets. Turkey is particularly vulnerable because of its dependence on foreign capital flows to finance a large current account deficit.

Also Turkish demand may be lower this year because of a good harvest of its own. Turkey's 2013 wheat production is expected to rise by 1.5 million tonnes to 22 million tonnes, the Turkish Agriculture Ministry said on Monday.

Russia, historically the world's third-largest wheat exporter, is seeking to increase exports after last year's drought, while prices of its wheat are supported by low stocks and concerns over a lack of high-quality wheat.

It exported 11.1 million tonnes of wheat in the marketing year to June 30, 2013, of which 2.1 million tonnes were shipped to Turkey and 2.7 million tonnes to Egypt, according to SovEcon agricultural analysts.

In August, Russia's grain exports reached 3.4 million tonnes, including 3.0 million tonnes of wheat, IKAR said, citing preliminary data. It did not provide data for comparison.

According to SovEcon, Russia exported 2.9 million tonnes of grain in August 2012, including 2.3 million tonnes of wheat.

Meanwhile, domestic prices for new crop sunflower seeds were quoted at 11,000-12,000 roubles per tonne last week, down from 11,500-12,000 roubles per tonne on a carriage-paid to (CPT) basis, SovEcon said.

IKAR pegged prices at 11,500-12,000 roubles per tonne. South Russian white sugar prices fell by 500 roubles to 24,100 roubles thanks to intensive beet sugar processing, IKAR said.

($1 = 33.3030 Russian roubles)
($1 = 0.7584 euros) (Reporting by Polina Devitt in Moscow; additional reporting by Dasha Afanasieva in Istanbul; editing by Jane Baird)

Source: Reuters  |  #grain   |  Comments: 0   Views: 84

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