Russian wheat export prices fall on weaker demand

Russian wheat export prices fell last week due to lower demand from Egypt and Turkey, the two largest buyers, and because of the rouble's strength against the dollar, an analyst said on Monday. Black Sea prices for Russian wheat with 12.5 percent protein content for April delivery were $189 a tonne on a free on board (FOB) basis at the end of last week, down $2 from the previous week, Russian agricultural consultancy IKAR said.
Egypt, the world's largest buyer of wheat and the top purchaser of Russian wheat, did not hold a state tender to buy wheat last week. It has also rejected, on a preliminary basis, seven grain cargoes since introducing new import rules in January, according to traders. Meanwhile, Turkey put purchases of wheat, maize and sunflower from Russia on hold from mid-March, although Ankara denies it has imposed any formal bans on imports from Russia.
SovEcon, another Moscow-based consultancy, quoted FOB wheat at $192 a tonne at the end of last week, unchanged from a week earlier. FOB maize (corn) prices fell $2 to $175 per tonne, it said. Supplies to Turkey usually went from Russian shallow-water ports and prices there are likely to fall soon, SovEcon said. So far, FOB wheat prices from shallow-water ports were unchanged at $166 per tonne.
Russia expects to replace Turkey with other buyers of its grain within up to five months, Russian agencies quoted Agriculture Minister Alexander Tkachev as saying on Monday. Russia exported 26.9 million tonnes of grain between July 1 and March 22, down 1.8 percent from a year earlier, including 20.6 million tonnes of wheat, Russia's agriculture ministry said.
Domestic prices for third-class wheat, excluding delivery, fell 175 roubles to 9,950 roubles ($174.5) a tonne in the European part of Russia at the end of last week, SovEcon said. Spring grain sowing in Russia is slowly gathering pace and is 1.7 percent completed. Sunflower seeds fell 675 roubles to 18,200 roubles a tonne, SovEcon said. Domestic sunflower oil fell 600 roubles to 42,075 roubles while export prices were down $10 to $710 a tonne. "Turkish restrictions are hitting the sunseed and sunflower market the most," SovEcon added. Turkey was the largest buyer of Russian oil.