Russian wheat market remained sluggish in the holiday period

04.01.2019

Wheat export prices in Russia underwent no substantial changes during last week. Wheat with 12.5% protein became slightly cheaper on the year-end slowdown in trading activity. In general, the market was actually flat in the pre-holiday period – it only operated for closing contracts, reports UkrAgroConsult.

Last week’s main news was the publication of preliminary data on the country’s crop by the Russian State Statistics Service. The market was somewhat surprised by its wheat crop figures.

According to preliminary information, Russia’s wheat crop in net weight amounted to 72.07 MMT against 70-71 MMT expected by market players. The Russian State Statistics Service published the barley crop at 16.98 MMT – this meets market expectations. At the same time, the corn crop figure at 11.16 MMT also exceeded market expectations, though insignificantly.

It should be taken into account that the final data on the 2017 crop were lower than preliminary ones – this may be the case in 2018 as well.

It is worth noting that domestic grain prices in Russia keep surging, especially in regions having much lower inventories than last year. Another bullish factor for purchase prices is a weakening rouble – the Russian currency lost almost 5% in December.

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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UkrAgroConsult

 

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