Russia. Wheat export prices continued their growth last week

22.09.2017

Price growth continued in the Russian wheat market this past week. Average prices for Russian wheat with 12.5% and 11.5% protein closed the week up another $3‑4/MT at $187‑190/MT FOB and $178‑181/MT FOB, respectively (Novorossiysk port, October-November delivery), reports UkrAgroConsult.

They were supported by price growth in the world wheat market and strong foreign demand for Russian wheat. In view of the above, part of market participants began holding back their sales as much as possible in the hope of further price upturn.

Also, noteworthy is that this year’s enormous grain supply from Russia in view of high carryovers makes it possible for exporters to sell the commodity at more competitive prices than European offers.

The domestic market is dominated by a downward price trend. Purchase prices keep falling on sufficient supply of wheat of all classes. However, their fall is slower now. Some growers who have already replenished their working capital are stopping grain sales and getting focused on harvesting and planting operations for now.

 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.

 

UkrAgroConsult

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