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Russian wheat export prices rise on slow supply

Reuters, 30.07.20


MOSCOW: Russian wheat export prices rose for the third consecutive week last week as farmers in southern regions were slow to ship out the new crop, analysts said on Monday. Exports from Russia, the world's second largest wheat exporter after the European Union, are warming up after a slow start of this season, which began on July 1.

Traders are buying wheat more actively in the Volga and the Black Earth regions, consultancy SovEcon said, which could support higher prices there but limit further price growth in regions closer to the Black Sea.

Russian wheat with 12.5% protein loading from Black Sea ports was at $210 a tonne free on board (FOB) for supply in August at the end of last week, up $1 from the week before, the IKAR agriculture consultancy said in a note.

SovEcon pegged it at $209 per tonne, up $0.5. Barley remained at $181 a tonne. "Some traders say they have contracted enough grain for approaching vessels," SovEcon said.

While Russia's 2020 grain harvest is progressing, some rains arrived in its Central and Southern regions last week and increased moisture reserves in soil for spring crops. Some rains were also seen in the Urals, but Western Siberia and Volga remained dry, meaning that risks for spring wheat yields there continue to rise.



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