Russia. Despite huge crop and high stocks, producers are rather reluctant to sell grain

06.10.2016

Strengthening in prices was noted on Russian milling wheat market, informs UkrAgroConsult. Over the week export milling wheat price increased in average by USD 2-3 to USD 170-172/MT FOB for 12.5% wheat, and USD 162-165 / MT FOB for 11.5% wheat in the Novorossiysk port for October-November delivery.

At the export market of feed wheat increase in prices was also noted - to USD 153-155 /MT FOB in Novorossiysk for October delivery. Slight increase in demand from the key importers as well as the strengthening of ruble against dollar supported export prices for wheat. Over the week ruble strengthened by more than 2.5%.

National currency strengthening supported export prices, but put additional pressure on domestic prices. Purchasing prices on the Russian domestic milling wheat market continued to decline and during the week decreased by RUB 50-100 /MT in average.

Active sales from the producers are still not observed, despite the huge grain crop and high stocks.

The pace of grain exports from Russia remains low with forecasts to overcome 40 MMT. Perhaps expected recovery in demand from the importers will be able to "warm up" market operators for more active sales both in domestic and export markets.

milling wheat russia

 

UkrAgroConsult

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