Black Sea wheat prices continued sinking during last week

01.06.2018

RUSSIA. Russian prices for old-crop wheat continued sinking during last week, despite growth in the global market, reports UkrAgroConsult. On average, export prices for Russian wheat closed the week down another $1/MT at $210‑212/MT FOB for 12.5%-protein wheat, $200‑203/MT FOB for 11.5%-protein wheat, and $197‑200/MT FOB for feed wheat, Novorossiysk port, June delivery.

In small ports, average export prices for all-class wheat similarly decreased another $2-4/MT FOB as Turkey keeps reducing imports due to a weak lira. 

The export market is pressured by weakening demand from the top importers of Russian wheat, i.e. Egypt and Turkey. The pace of wheat exports from Russia slowed down noticeably in May.

Trading activity in the new-crop wheat market, on the contrary, intensified to some degree. In addition, forward prices for 2018-crop wheat in the export market closed the week up $1-2/MT FOB on the weather factor.

UKRAINE.  Last week, a bearish price trend continued also in Ukrainian old-crop grain market. Ukrainian grain prices kept going down pressured by inactive old-crop trading, reports UkrAgroConsult.

Export prices for Ukrainian old-crop wheat (12.5% protein) closed the week down on average USD 2/MT, while the prices for 11.5% protein wheat decreased to USD 200-203/MT FOB, and feed wheat prices – to USD 196-199/MT FOB, June delivery.

Meanwhile, forward prices for new-crop wheat strengthened by USD 1-2/MT FOB last week, amid a growing demand from importers. Old-crop wheat trade is slowing down.

Against the background of decreased trading and strengthening of the national currency, the further price reduction was seen in the domestic market.

Information on price behavior on grain market in the countries of Black Sea region is available to subscribers of "Black Sea Grain" by UkrAgroConsult.

 

UkrAgroConsult

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