Russian wheat exports up 41% in marketing year to date at 30.6 mil mt

04.04.2018

Russian wheat exports in the 2017-18 (July-June) marketing year to date are 41.2% higher than at this point last year at 30.611 million mt, data from the ministry of agriculture showed Monday.

Around 38 million mt of wheat is expected to be exported by the end ofcthe campaign, according to sources, a global record for a marketing year.

Wheat line-ups each month remain fully booked, sources said.

Prices for 12.5% protein wheat on an FOB basis reached a 34-month high of $209/mt recently on tight prompt supply and high replacement costs.

Prices were said to have peaked, according to sources, as improving weather should facilitate slicker transhipment from central regions to the south of Russia.

This should provide some more competitiveness against competitors in the European Union who have captured arbitrages routes to Western Africa on freight differentials.

But tight supply and farmers now being focused on springs sowing for next season have supported prices as less is offered on the market.

Russian exporters have also shipped 3.891 million mt of corn in the current marketing year, down a marginal 0.1% on the year.

Barley exports totaled 4.409 million mt, up 100% year-on-year, despite its high cost on firm demand, recently driven on buy tenders from Saudi Arabia and Tunisia.


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