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IKAR in Mass Media

Russia's wheat prices fall

08 июля 2015 года

Russia's wheat export prices fell last week, while barley prices also declined, weighed down by favourable weather in the key grain growing regions. Russia, historically the world's third-largest wheat exporter, is set to boost this year's harvest after a drought last year slashed its wheat crop by one third.

Weather conditions are expected to be good or satisfactory for the grain harvesting campaign in the Southern Federal District and in the North-Caucasus Federal District during the last week of June, the state weather forecaster said. Russia's Agriculture Ministry narrowed its 2013 wheat harvest forecast to 54 million tonnes last week from an earlier band of 50 million tonnes and 54 million tonnes.

Prices for wheat supplies with 12.5 percent protein content were down $2 at $262 per tonne in the Black Sea on a free-on-board (FOB) basis and down $10 at $230 per tonne in the Azov Sea last week, the Institute for Agricultural Market Studies (IKAR) said in a note on Monday. SovEcon agriculture analysts quoted prices for the fourth-grade wheat in a band of $253-$257 per tonne on a FOB basis in deep-water ports.

Chicago wheat prices also slid on Monday due to near-perfect growing conditions across the US grain belt. Benchmark November milling wheat on the Paris futures market was down 0.75 percent at 199 euros ($260) a tonne by 1103 GMT on Monday. Russia finished sowing spring grains last week with a total area of 30.6 million hectares, which was 0.9 percent ahead of plan and 650,500 hectares more than in 2012, data from the Agriculture ministry showed.

Spring wheat, however, will come from a smaller acreage as some farmers switched to barley, maize (corn) and sunseeds. Spring wheat was sown on 12.7 million hectares, or 98.2 percent of the plan, and an area 315,100 hectares smaller than a year ago. Barley, second in volume to wheat among Russian grain exports, also fell last week as the start of the harvest campaign brought an increase in offers of new-crop grain.

Prices for Russia's new-crop barley were quoted down $1 at $247 per tonne on a free-on-board (FOB) basis in the Black Sea last week, IKAR said. The price index in the Azov Sea was stable at $230 per tonne on a FOB basis. SovEcon quoted purchase prices on barely in a band of 7,400 roubles to 7,600 roubles ($230) per tonne on a carriage paid-to (CPT) basis in deep-water ports and at 6,800-7,200 roubles per tonne on the same basis in shallow-water ports. Two weeks ago Russia started harvesting winter barley in its southern regions, which are the largest grain producers and cereal exporters via the Black Sea. As of June 21, the country has harvested 1.3 million tonnes of grains from 301,800 hectares, including 323,100 tonnes of wheat and 896,100 tonnes of barley, the ministry said.

Source: Business Recorder  |  #grain   |  Comments: 0   Views: 124

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