Russian wheat export prices soared again on strong demand from importers

Russian wheat export prices soared again on strong demand from importers

Russian wheat export prices soared again on strong demand from importers

MOSCOW (Reuters) – Export prices for Russian wheat rose sharply last week on importers' demand, particularly in Turkey, continuing the uptrend for the third straight week, analysts say.

According to IKAR, the price of a ton of wheat with 12.5% protein content in Novorossiysk rose to $ 224 ex-board from $ 216 a week earlier. On Monday, the price climbed even higher – to about $ 227 per tonne.

SovEkon recorded an increase in the price of this class of wheat also by $ 8 to $ 222 FB / t, suggesting that prices are becoming less competitive.

Refinitiv's data also shows prices soaring to $ 223 from $ 218 per tonne FOB.

The main possible factor for the decline in prices for Russian wheat remains the estimate of the new harvest, which continues to rise, writes SovEkon.

Last week, the weather was mostly dry in the European part of the Russian Federation, but it rained in the southern regions.

The coming weeks will be mostly dry in winter wheat regions and should be watched, say SovEkon analysts.

Since the beginning of the 2020/2021 marketing season from July 1 to September 10, Russia has exported 10.2 million tons of grain, which is 1% less than last year.

Exports of wheat amounted to 8.5 million tons, or 5% less than the same period last season, barley – 1.5 million tons (38% more), corn – 0.22 million tons (35% less), writes SovEkon with a link to official customs data.

Agency analysts note the expected acceleration of export rates in September: the volume of wheat exports may become a record in a month, amounting to 5.1 million tons or more, and in general grain – about 5.7 million tons.

In the domestic market, the price of third-class wheat last week increased by 300 rubles per ton to 13.050 rubles, the fourth – by 325 rubles to 12.950 rubles per ton with self-pickup for the European part of the Russian Federation, writes SovEkon.

Sunflower prices jumped over the week by 3.900 rubles to 26.475 rubles per tonne, reaching a new historical maximum at the very beginning of the season, analysts say SovEkon.

Export prices for sunflower oil rose by $ 40 to $ 875 per tonne FOB.

The IKAR white sugar index for the South of the Russian Federation by the end of last week rose to $ 470.01 per ton from $ 441.23 a week earlier, or to 35.50 rubles from 33.30 rubles per kilogram.

(Olga Popova, Polina DeWitt. Editor Anastasia Lyrchikova.)

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