Russian wheat export prices flat last week, demand muted

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Russian wheat export prices were flat last week amid muted demand from importers, yet dwindling supply from farmers, after a prolonged price slump, analysts said.

The price of 12.5%-protein Russian wheat scheduled for free-on-board (FOB) delivery late November-early December was $224 per metric ton last week, the same as the week before, the IKAR agriculture consultancy reported.

The Sovecon agriculture consultancy saw the price for the same class of wheat last week at $228-234 per ton FOB, down $1 from the week before.

“Russian grain is priced competitively at the moment but demand from buyers is muted,” Sovecon noted in its weekly report.

Russia exported 1.08 million tons of grain last week, like the week before, including 0.99 million tons of wheat, compared with 0.94 million tons the previous week, Sovecon wrote, citing port data.

Its estimate of wheat exports in October was revised up 0.2 million tons from last week to 4.4 million tons, compared with 4.5 million tons a year ago and 4.1 million tons on average.

Last week, the Ministry of Agriculture of the Russian Federation raised its estimates of the grain harvest and exports.

The wheat harvest as of Oct. 26 totalled 93.6 million tons versus 104.5 million tons а year earlier, from 28.8 million hectares planted versus the previous year’s 29.2 million hectares.

The average yield came in at 3.25 tons per hectare, against 3.58 tons per hectare a year before.

Sowing of winter grains was carried out on an area of 17.5 million hectares, up from 16.6 million hectares a year earlier, Sovecon wrote.
Source: Reuters

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