Russia. Wheat market remained bearish last week

22.06.2018

Bearish price trends dominated the Russian wheat market during last week. Forward prices for Russian milling wheat from the new crop closed the week on average down $1-3/MT, Novorossiysk port, July-August delivery.

Prices are pressured by the upcoming harvest (weak foreign demand ahead of mass new-crop arrivals) along with downward trends in the world market, UkrAgroConsult’s analysts report.

Harvesting of winter barley has already started in the south of the country, almost two weeks ahead of usual time. Harvesting of winter wheat will begin in the south of the country shortly.

Despite the price drop, the Russian wheat market is still supported by the weather factor. Although the crop is still expected to be one of the heaviest in the country, it will nevertheless be at a three-year low or 15-18% smaller than last year.

In the near term, the Russian wheat market will most likely be dominated by a bearish factor – harvesting of the new crop.

According to the Russian Statistics Service, farming, procuring and processing entities held a total 26.8 MMT of grain as of May 1, 2018, i.e. 12.6% more than on the same date last year.

Russian growers accounted for 6.7 MMT of wheat, i.e. 15.4% more than a year ago, UkrAgroConsult’s analysts report.

Farmer corn stocks are down 16.3% year-on-year at 1.47 MMT.

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

More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop as well as crop conditions and progress in planting in the countries of Black Sea Region is available to subscribers for “Online market review” by UkrAgroConsult.

 

 

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