Russia. Prices kept falling in Russia’s milling wheat export market

31.03.2017

Export prices for Russian milling wheat closed the week down another $1 at $190‑192/MT FOB for 12.5%-protein wheat and $186‑188/MT FOB for 11.5% wheat in the Novorossiysk port for April-May delivery.

The prices were pressured not only by downward trends in the world market. Expectedly, the Turkey situation is adversely affecting the export market. Apart from a strengthened rouble, which already constrains Russian grain exports and reduces their competitiveness in the export market, Russian exporters now have to looks for alternative end markets instead of Turkey.

Moreover, Egypt also put additional pressure on Russian wheat last week. According to market participants, seven Russian wheat cargoes were detained in Egyptian ports for quality complaints. In view of the above, the state buyer GASC demands a discount of roughly $2/MT.

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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