Russia. Market players are switching to the new-crop wheat


Trading activity in the Russian old-crop wheat market continued slowing during past week. Market players are switching to new-crop wheat, but the trade in it is not very brisk either, reports UkrAgroConsult.

The current meteorological situation in Russia’s grain growing regions along with a lag in planting brings uncertainty to the market. Growers will most likely take a wait-and-see attitude in marketing new-crop wheat on the expectation of price growth in both short- and long-term.

Noteworthy is that precipitation of various intensities occurred in most of the country, but it was mostly ineffective and scattered.

Therefore, soil drought deepens in the south of Russia. It should be pointed out that part of the Southern federal district also lacked soil moisture in the same period last year. However, in the current season, this adversity has spread almost all over South Russia, including southern parts of the Volga federal district. So, droughty weather prevails in most regions where winter wheat and winter barley are cultivated.

The above market events helped export prices for new-crop wheat. The current level of forward prices for Russian milling wheat is on average $22-24/MT FOB higher than at the same time last year.

As a reminder, Russian wheat prices stay at three-year highs. The past year 2017 did not see such a substantial price drop as in the previous years, even despite a bumper wheat crop in Russia and enormous supply of the commodity in the global market.

Check up prices and enjoy free online charts on UkrAgroConsult’s website. Daily updated commodity exchange prices (CBOT, ASX, BCE, MATIF, WCE, LIFFE) and cash market quotations for wheat, corn, barley, soybean, sunflower and other agricultural commodities in Ukraine, Black Sea region and world are available in section "Prices and Futures".



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