Russian wheat prices rise amid dry weather, high demand

MOSCOW: Russian wheat export prices rose for the fourth consecutive week last week after dry weather in several regions and high demand from importers, analysts said on Monday.

Farmers in Russia, one of the world's largest wheat exporters, have been sowing winter wheat in dry soil this year, increasing risks for the 2021 crop, though weather conditions have been gradually improving in the last two weeks.

Russian wheat with 12.5% protein loading from Black Sea ports and for supply in November was at $257 a tonne free on board (FOB) at the end of last week, up $6 from the previous week, agriculture consultancy IKAR said in a note.

Sovecon, another Moscow consultancy, said wheat rose by $7 to $255 per tonne, while barley rose by $3 to $210 a tonne.

Domestic prices for wheat continued to climb sharply amid strong demand both from domestic consumers and exporters.

"Farmers are cautiously watching the constantly growing market still anticipating higher prices," Sovecon said. "At the same time, rumours about export restrictions and rouble/dollar reversal may encourage them to sell more."

Russia's agriculture ministry has said it will impose a quota on Russian grain exports for January-June. It is yet to disclose its size.

The rouble hit a one-month high against the dollar late last week, but has weakened since then.