Russian wheat rises on Ukraine price strength

01.11.2016

Russian wheat export prices rose for the sixth consecutive week on support from higher prices in Ukraine, its rival supplier via the Black Sea, which has recently signed large deals with India, analysts said on Monday.

Black Sea prices for Russian wheat with 12.5 percent protein content for November supply were at $178 a tonne on a free-on-board (FOB) basis at the end of last week, up $3 from a week earlier, Russian agricultural consultancy IKAR said in a note.

SovEcon, another Moscow-based consultancy, quoted them at $177.5 a tonne, up $2.

India is expected to receive about eight to ten cargoes of wheat from Ukraine in November, trade sources said last month.

Azov Sea prices for Russian wheat with 12.5 protein content were down $1 at $153 a tonne, IKAR added.

Russia exported 12.5 million tonnes of grains, including 10.1 million tonnes of wheat, between July 1 and Oct. 26, the agriculture ministry said. The pace of grain exports was down 6 percent year on year.

Domestic prices for third-class wheat were up 50 roubles week on week to 10,375 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 1,125 roubles to 19,950 roubles a tonne, SovEcon said. Domestic sunflower oil prices remained at 48,675 roubles, while export oil prices were up $5 at $770 a tonne.

IKAR’s white sugar price index for southern Russia fell $22 last week to $579 a tonne as of Oct. 28.


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