Russia. Wheat export prices continued their growth last week


Price growth continued in the export market of Russian wheat, reports UkrAgroConsult. Export prices for milling and feed wheat closed the week on average up another $2-3/MT FOB both in deep-water and small ports (October-November delivery). They were pushed up by both global and domestic market factors.

Last week, Egypt returned to the market with a government tender for wheat purchase. It bought 180 KMT of Russian wheat at an average price of $235.55/MT FOB that is $8.21/MT FOB above the average purchase price in the previous tender of September 18.

The reporting week featured the government’s decision to market grain from the federal intervention reserves through exchange trading. According to an October 4 resolution, up to 1500 KMT of wheat, rye and feed barley bought for the intervention reserves during 2008-2016 intervention purchases are to be sold either in Russia’s domestic market or for export in 2018–2019.

It is worth noting that domestic grain prices in Russia have reached peak values this season. Taking into account that wheat exports are at a record high against the background of a wheat crop decline in the country, the decision to sell grain from the state reserves is most likely aimed at both curbing domestic price growth and avoiding shortage of grain stocks at processing facilities. 

More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior, crop conditions and progress in harvesting/planting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Grain" by UkrAgroConsult.

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