Russian wheat export prices up on quality concerns
MOSCOW - Russian wheat export prices rose further last week on concerns that recent rains could hit crop quality, analysts said. Black Sea prices for Russian wheat with 12.5 percent protein content were at $184 a metric ton on a free-on-board (FO...
MOSCOW - Russian wheat export prices rose further last week on concerns that recent rains could hit crop quality, analysts said.
Black Sea prices for Russian wheat with 12.5 percent protein content were at $184 a metric ton on a free-on-board (FOB) basis at the end of last week, up $4 from a week earlier, Russian agricultural consultancy IKAR said in a note.
SovEcon, another Moscow-based consultancy, quoted FOB wheat prices in the Black Sea area at $187.5 per metric ton, up $5.5.
"Excessive rains in (Russia's) south and centre are not only complicating the sowing of late spring grains, but are also worsening the outlook for the winter grain crop," SovEcon said.
It added that there was no need to dramatise the situation as market players' concerns about lower wheat quality in years of large crops were nothing out of the ordinary.
Russia is widely expected to harvest the largest wheat crop and the second largest grain crop in its post-Soviet history this year.
The country exported 33.0 million metric tons of grains, including 23.9 million metric tons of wheat, between July 1 and June 8, the agriculture ministry said. The pace of grain exports was up 12.5 percent year-on-year.
Domestic prices for third-class wheat added 250 roubles compared with the end of the week earlier to 11,975 roubles ($181.6) a metric ton in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.
SovEcon also said average prices for sunflower seeds added 1,125 roubles and reached 25,625 roubles a metric ton. Domestic sunflower oil prices rose 250 roubles to 54,500 roubles a metric ton, while FOB Black Sea export prices were up $5 to $810 a metric ton.
IKAR's white sugar price index for southern Russia was at $692 a metric ton at the end of last week, up $34 from a week earlier.