Russian wheat export prices decline as new crop supply is set to rise
Russian wheat export prices fell last week due to lower global prices and weak demand ¹. The price of 12.5% protein Russian wheat was $218 per metric ton, down $3 from the previous week ¹. Analysts expect new crop supplies to increase, exerting further downward pressure on prices ¹.
MOSCOW, Aug 19 (Reuters) -Russian wheat export prices declined last week amid lower global prices and weak demand, as analysts expect new crop supplies to increase and exert further downward pressure.
The price of 12.5% protein Russian new crop wheat scheduled free-on-board (FOB) with delivery in late September was $218 per metric ton at the end of last week, $3 lower than the week before, according to consultancy IKAR.
“There is no demand. The expectation is that there will be no price increases,” said IKAR head Dmitry Rylko.
Sovecon put the price of wheat with the same protein content for nearest delivery at $219-$221 per ton, down from $220-$223 per ton at the end of the previous week.
Egypt did not buy any wheat from Russia at a tender by the General Authority for Supply Commodities last week.
Russia is the world’s largest wheat exporter. Its exports increased to 1.10 million tons of grain last week from 0.99 million the week before.
Shipments included 1.04 million tons of wheat, up from 0.89 million tons a week earlier, Sovecon wrote, citing port data. Sovecon estimates the wheat exports in August at 4.6 million tons versus 5.3 million tons a year ago.
The harvesting campaign is underway in Russia, and the sowing of winter crops has also begun. However, wheat supply from farmers remains sluggish.
“Supply remains limited. Farmers seem to be in the driver’s seat, but we doubt that this situation will last long. We expect to see a larger supply shortly, given the challenging financial situation for producers,” Sovecon said in a weekly note.
As of Aug. 13, Russian farmers had harvested 69.0 million tons of grain from 20.6 million hectares, compared to 73.5 million tons from 19.5 million hectares last year.
The average yield was 3.36 tons per hectare, down from 3.76 tons a hectare the year before.
The wheat harvest totalled 56.3 million tons from 15.8 million hectares, down from 57.4 million tons from 14.2 million hectares last year, with an average yield of 3.58 tons per hectare compared to 4.06 tons, Sovecon said.
Other Russian data provided by Sovecon and IKAR:
| Product: | Most recent data: | Change from a week earlier |
| – Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon) | 14,700 rbls/t | +300 rbls/t |
| – Sunflower seeds (Sovecon) | 32,025 rbls/t | 0 rbls/t |
| – Domestic sunflower oil (Sovecon) | 77,250 rbls/t | 0 rbls/t |
| – Domestic soybeans (Sovecon) | 37,850 rbls/t | -1,150 rbls/t |
| – Export sunflower oil (IKAR) | $885/t | +$15 |
| – White sugar, Russia’s south (IKAR) | $630.63/t | -$39.43/t |
TABLE-Russian February grain export estimates from Sovecon consultancy ID:nL5N3F41JF
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