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Russian Wheat Prices Jump With Global Benchmarks And Strong Demand

By Donna Ahern
Russian Wheat Prices Jump With Global Benchmarks And Strong Demand

Russian wheat export prices rose sharply last week after prices for Chicago and Paris futures rose and on strong demand from a large buyer, analysts said on Monday.

Egypt, the second-largest importer of Russian wheat behind Turkey, purchased 530,000 tonnes of Russian wheat for October shipment last week.

Russian wheat with 12.5% protein loading from Black Sea ports and for supply in September was at $211 a tonne free on board (FOB) at the end of last week, up $9 from the previous week, agriculture consultancy IKAR said in a note.

Sovecon, another Moscow consultancy, pegged wheat at $206 a tonne, up $7, and barley up $3 at $185 a tonne.

Ukraine has almost finished harvesting its new crop, while Russian wheat harvesting is 67% complete.

Russian Crops

Yields in Russia are down from a year ago because of damaged crops in the Urals in Siberia, Sovecon said, adding that the decline is in line with expectations.

Russian grain terminals in deep-water seaports are operating at full export capacity and are in talks with traders about raising their transshipment prices by $2-$4 from October from the current $15-$16 a tonne, Sovecon said.

Sovecon added that some traders said that the Black Sea port of Novorossiisk has limited the daily number of grain rail cars it will accept.

News by Reuters edited by Checkout. Click subscribe to sign up for the Checkout print edition.

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