Russia. Bullish trends dominated on wheat market last week


Upward price trends dominated the Russian wheat market last week. Export prices for Russian milling wheat closed the week up another $2/MT at $214-217/MT FOB Novorossiysk port for May-June delivery. Prices for 11.5%-protein wheat, feed wheat and wheat in small ports remained at the previous week’s levels, reports UkrAgroConsult.

Despite the turnaround of prices in the global wheat market, Russian commodity remains supported by both domestic factors (currency and grain supply) and foreign ones (demand).

Due to the collapse of the rouble, purchase prices for wheat continues rising in the domestic market. Port prices showed the greatest response to the currency factor. Purchase prices for Russian wheat in Novorossiysk port increased some RUB 500-700/MT to RUB 12,400-12,900/MT СРТ (including VAT) – this could not but push up export prices. 

A lack of offers is reported in ports. In view of large wheat export contracts signed before, traders are forced to raise purchase prices in April in order to faster attract and make up export consignments. At the same time, it is worth remembering that wheat supply in the regions lying close to South Russia is already limited.

According to UkrAgroConsult, preliminary estimates suggest that Russia has exported over 33 MMT of wheat in the 2017/18 season.

More information on price behavior on grain market in the countries of Black Sea region is available to subscribers for weekly market report "Black Sea Grain" and "Online market review" by UkrAgroConsult.



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