Russia. Grain market was influenced by currency factor and high grain inventories

20.01.2017

Last week’s prices in the Russian grain market were driven by the two main factors: the rouble’s exchange rate behavior and high grain inventories in the domestic market.

Despite some upturn in world quotations, export prices for Russian 3rd grade wheat stayed at USD 182-183/MT FOB for January-February delivery. Pressure of record domestic inventories prevents Russia from raising prices. This stability, in turn, makes Russian grain more competitive on the global floor. This thesis is confirmed by the win of Russian grain in an Egyptian tender.

Apart from other factors, domestic prices appeared under pressure from a persistently strengthening rouble. Exporters buying 4th grade wheat with delivery to the Novorossiysk port elevator cut their purchase prices on average by RUB 100. Prices for 4th grade wheat at southern elevators dropped on average by RUB 150.

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 Oil" and "Online market review" by UkrAgroConsult.

 

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