Russian wheat export prices to Turkey plummet on lack of demand


Russian wheat prices for exports to Turkey have sunk to their lowest point since the new year as good coverage and falling prices dull any new buying interest.

S&P Global Platts assessed CIF-Marmara 13.5% protein wheat at $247/mt Monday, a tumble of $5 on the week as March shipment offers were widely trimmed to $248/mt to attract buyers back to the market.

However, relatively good coverage in Turkey, especially for higher protein grades and previous good buying for lower protein wheat have kept buyers on the sidelines.

The lack of cargoes to ship has triggered some vessel owners to operate their coasters with squeezed margins, according to sources.

"Vessels have no cargoes planned for loading in H2 February so lots... are working for zero profit," a source said.

Freight from the Azov Sea through to destinations on the Black Sea such as Marmara has been dwindling.

Azov to Marmara is now fixable at $18/mt, a touch higher from $16/mt a week ago but still at one of its lowest rates for eight months and far off from the $31/mt it set at the turn of the year.

But with demand faltering, freight is likely to return to $16/mt and possibly sink lower, sources said, as vessel owners look for business.

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