Russian wheat export prices rose sharply
Russian milling wheat export prices rose last week, with 12.5% protein wheat reaching $235–241/tonne, driven by escalating tensions in the Black Sea and Strait of Hormuz. SovEcon cut its July wheat export forecast to 1.5 million tonnes, citing higher logistics costs despite ongoing harvest progress.
Export prices for Russian milling wheat increased last week amid escalating hostilities in the Black Sea and the Strait of Hormuz, Reuters reported.
According to Dmitry Rylko, Director General of the Institute for Agricultural Market Studies (IKAR), the price of new-crop wheat with 12.5% protein (FOD) for August delivery rose by $7 over the week to $235 per ton.
“The escalation of military and political risks in the Black Sea and the situation in the Strait of Hormuz are driving the overall increase in prices,” Rylko said.
SovEcon estimated prices for Russian new-crop 12.5% protein wheat last week at $238-241 per ton, compared with $227-229 per ton a week earlier.
The consultancy also revised down its July wheat export forecast by 0.5 million tons to 1.5 million tons, which would be the lowest July volume since 2017, when exports totaled 1.4 million tons.
“We expect wheat shipments to deep-water ports to increase in the near term as the harvest campaign continues, while navigation in the Sea of Azov remains closed. However, higher logistics costs will continue to constrain exports,” SovEcon head Andrey Sizov said.
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Source : APK Inform
