Russia wheat market remained relatively stable last week


Stabilization of prices is observed in the export market of Russian high-protein wheat. Some strengthening was seen in the market of wheat with 11.5% protein – roughly $1-2/MT FOB in deep-water ports, October-November delivery, but the market remained mostly without significant changes.

Further growth of prices for Russian wheat was curbed by improving grain crop prospects in the country, reports UkrAgroConsult.

The harvest of major grains in Russia is drawing to a close. That of wheat and barley is 98% complete, including 94-95% completion in Siberia. So, fears about possible harvest underfulfilment and heavier losses fade away.  

In view of the above, market participants upwardly revised their estimates for Russia’s grain crop last week. In particular, the Russian Ag Ministry raised its forecast for this year’s wheat crop in the country to 68-69 MMT (the previous estimate equaled 64.4 MMT). The Russian Ag Ministry expects the 2018 grain crop in the country at 106 MMT.

As of mid-October, sunseed market prices in Russia are gradually decreasing. The reason is abundant supply of this raw material against the background of a decline in prices of finished products. In general, October is traditionally one of the cheapest months from the viewpoint of oilseed purchase prices. However, the market received additional support from weather conditions (above-average air temperatures and minimum precipitation) that enable farmers to harvest sunseed of optimum quality almost without impediment.

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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