Russian wheat prices rise amid high demand, dry weather

MOSCOW: Russian wheat export prices rose last week due to high demand from exporters and limited supply from farmers concerned about dry weather in several regions which signals risks for the 2021 crop, analysts said on Monday.

Russian wheat with 12.5% protein loading from Black Sea ports and for supply in October was at $245 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.

Sovecon, another Moscow consultancy, said wheat rose by $4 to $239 per tonne, while barley rose by $6 to $203 a tonne.

Current dry weather may reduce Russia's winter wheat sowing area by 10%-15%, mainly in the central part of the country, Sovecon said last week.

Traders in Russia's southern regions report some delays with securing phyto certificates needed for export, Sovecon said, adding that it was probably caused by the lack of state inspectors who issue these certificates amid the COVID-19.

Sovecon said Russia's October grain exports were expected to be 5 million tonnes, including 4.3 million tonnes of wheat.

Sovecon also upgraded its forecast for Russia's 2020 sunflower seeds crop by 400,000 tonnes to 12.2 million tonnes.