Russia. Significant supply of 11.5% wheat and feed wheat put pressure on prices last week

15.09.2016

Russian high protein wheat 12.5% has stabilized on the export market within USD 171-172 / MT FOB in the Novorossiysk port for September-October delivery. Strengthening of wheat price on the global market was a supporting factor. At the same time, domestic prices for high protein wheat in Russia decreased during the week at the background of Ruble volatility against the dollar.

Decrease in export prices for 11.5% wheat in both Novorossiysk and Azov ports was observed. Last week prices for 11.5% wheat decreased in the Novorossiysk port by USD 2/MT for September-October delivery.

A significant reduction was noted in the Azov port - about USD 4/MT.

Significant supply of 11.5% wheat and feed wheat 

Decline in prices was also observed in the feed wheat market. During the week export prices for feed wheat decreased in average by USD 3-4/MT for September-October delivery.

Significant supply of 11.5% wheat and feed wheat put pressure on prices. Despite a faster pace of exports from Russia in July-August 2016/17, supply exceeds its demand.

Egypt continues to pressure the market. The requirement for zero ergot content and refused cargo of Russian wheat have already raised concerns among Russian traders for wheat sales.

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 & Oil" and "Online market review" by UkrAgroConsult.

 

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