Russian wheat export prices almost unchanged for third week on low demand
Russian wheat export prices maintained their levels last week in the face of a tacit minimum delivery price restriction while international markets declined and domestic markets were under pressure from a strong harvest.
The price of 12.5%-protein Russian wheat scheduled for free-on-board (FOB) delivery in late October-early November was $235 per metric ton last week, the same as the two previous weeks in a row, the IKAR agriculture consultancy reported.
Egypt’s GASC did not buy Russian wheat in the last tender again. Traders and analysts still talk about the tacit limitation of the minimum export price for Russian wheat which is noticeably higher than the latest competitor offers.
Demand from exporters domestically was close to zero, and most of them stopped buying. Demand from domestic buyers remained weak as well, the Sovecon agriculture consultancy noted.
Russia exported 1.22 million tons of grain last week compared to 1.23 million tons a week earlier, including 1.04 million tons of wheat, compared with 1.11 million tons a week earlier, Sovecon wrote in its weekly note, citing port data.
Sovecon retained its estimate of Russian wheat exports in September at 5.1 million tons versus 4.2 million last year.
The wheat harvest as of Sept. 28 totalled 88.3 million tons (versus 101.7 million tons а year earlier) from 25.8 million hectares (versus 28.2 million hectares), with an average yield of 3.42 tons per hectare (3.61 tons per hectare).
Wheat quality could be the lowest since 2018, Sovecon noted.
In 2022, the final share of food wheat was around 80%. The lowest food wheat share of 70% caused by rains was observed in 2018.
The results of the survey of Russia’s agricultural watchdog Rosselkhoznadzor division revealed food wheat of 1-4 classes – 72.8% as of Sept. 25.
Sowing of winter grains was carried out on an area of 10.9 million hectares, up from 9.3 million hectares a year earlier, Sovecon wrote.
Source: Reuters (Reporting by Olga Popova, Editing by Alison Williams)
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