Russia. Wheat market continued downward price movement last week

25.05.2018

Downward price movement continued in the Russian wheat market during last week. Export price for Russian wheat closed it on average down another $2-3/MT at $210‑213/MT FOB for 12.5%-protein wheat, $201‑204/MT FOB for 11.5%-protein wheat, and $198‑200/MT FOB for feed wheat in Novorossiysk port, May-June delivery, reports UkrAgroConsult.

Similarly, FOB export prices for all-types wheat in small ports lost on average $2/MT in view of decreased supplies to Turkey.

The export market is being pressured by a slowdown in sales of old-crop wheat. The number of buyers is falling, exporters are switching to the 2018-crop wheat trade, where demand is on the rise.

Due to a delay in harvest at the start of MY 2017/18, in July, this period of season saw abnormal price growth. Large-scale arrivals of the new crop to the market began no sooner than August 2017 and the traditional price drop took place as late as the latter half of August, not in June-July as usual.

Similar developments are observed in the new 2018/19 season as well. Although gaining momentum, spring wheat planting still lags behind last year. Noteworthy, the pace of spring sowing in Russia is the slowest in five years.

Exports from Russia continue at a record pace for this time of season. According to preliminary information of market participants, some 36.6 MMT of wheat had been exported from the country by May 20.

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Information on price behavior, tendencies and forecasts on grain market in the countries of Black Sea region is available to subscribers of "Black Sea Grain" by UkrAgroConsult.

 

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