FOB-Azov Russian 12.5% protein wheat hits over four-month high


Coasters carrying Russian 12.5% protein wheat from Azov port on a FOB basis hit $170.25/mt, according to S&P Global Platts price assessment Tuesday, a four-and-a-half-month high.

A surge in demand for 10.5% protein wheats, particularly from Turkish biscuit producers, has led to a shortage, prompting buyers to seek substitutes in the form of 11.5%, 12.5% and 13.5% protein wheats, sources said.

The situation is further compounded by strength in the ruble against the dollar, making replacement costs higher, as well as the beginning of winter ice and low water levels, making loading and shipment much trickier and riskier, according to sources.

"With growing demand and other uncertainties, producers are willing to hold stock to make the most of price increases. Buyers are there but I'm not seeing any offers. Sellers prefer to hold cargoes," a source said, despite stocks being available.

Similarly to the coasters market, the deep sea market has seen a drop in activity as sellers withhold stock on foreign exchange burdens. Participants would expect to see greater activity when the dollar-ruble exchange rate is closer to $60.

FOB-Azov bids were heard around $169/mt Tuesday with participants expecting the market to move higher Wednesday and through the week.


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