Russian Wheat Export Prices Up After Egypt Resumes Tenders

18.10.2016

Russian wheat export prices rose last week on renewed purchases by Egypt and other importers, analysts said on Monday.

Black Sea prices for Russian wheat with 12.5 percent protein content were at $174 a tonne on a free-on-board (FOB) basis at the end of last week, up from $170 a week earlier, Russian agricultural consultancy IKAR said in a note.

SovEcon, another Moscow-based consultancy, quoted FOB wheat prices in the Black Sea area up 50 cents at $174 per tonne. “This was due to a combination of several factors, such as the normalisation of GASC tenders, and a revitalisation of tenders from other regional importers,” said IKAR analyst Dmitry Rylko.

Egypt’s state grain buyer GASC, the world’s largest importer of wheat, said on Thursday it had purchased 60,000 tonnes of Russian wheat after reversing a zero tolerance policy on the common grain fungus ergot last month. The zero tolerance policy had effectively cut Cairo off from global grain markets. Domestic prices for third-class wheat were flat week-on-week at 10,225 roubles ($164) a tonne in the European part of Russia on an ex-works basis, according to SovEcon.

Ex-works supply does not include delivery costs.

New crop sunflower seed prices fell 350 roubles to 21,475 roubles per tonne, SovEcon said, while domestic sunflower oil prices dropped 500 roubles to 48,925 roubles and export oil prices were flat at $755 per tonne.

IKAR’s white sugar price index for southern Russia fell $25 last week to $576 a tonne as of Oct.14.


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