Russian wheat prices rise further on strong demand from importers

MOSCOW: Russian wheat export prices rose for the third week in a row, supported by strong demand from major importers such as Turkey, analysts said on Monday.

Russian wheat with 12.5% protein loading from Black Sea ports and for supply in September was at $224 a tonne free on board (FOB) at the end of last week, up $8 from the previous week, agriculture consultancy IKAR said in a note. Prices rose further on Monday and reached $227, it added.

Sovecon, another Moscow consultancy, pegged wheat up $8 at $222 a tonne at the end of last week, and barley up $3 at $188 a tonne.

"Russian wheat starts to lose its competitive edge after recent rally," Sovecon said, referring to competition between Russian and French wheat.

Russian domestic wheat prices also rose last week, it added.

Wheat exports from Russia are expected to reach 5.1 million tonnes in September, a record level for this month, Sovecon said.

Rain arrived in Russia's southern regions last week, easing the situation for farmers sowing winter wheat for the 2021 crop amid lack of moisture in soil, Sovecon said, adding that the next two weeks are, however, expected to be dry again.

Sovecon added that sunflower seed prices rose sharply last week - by 3,900 roubles to 26,475 roubles per tonne, reaching an all time high.