MOSCOW: Russia kept its wheat exports steady via its Black Sea ports last week as Azov Sea routes remain restricted, analysts said on Monday, while domestic prices for the grain continued to rally because of the recent weakening of the rouble.
Western sanctions imposed on Russia for what Moscow calls “a special military operation” in Ukraine have complicated trade logistics and transactions in foreign banks for many Russian firms in the last four weeks.
“Export flow continues as a combination of old and newly signed contracts,” said Dmitry Rylko, the head of the IKAR agriculture consultancy.
IKAR and Sovecon, another consultancy, said prices for wheat with 12.5% protein content from the Black Sea ports were being assessed at around $390 per tonne free on board (FOB).
However, buyers do not want to buy at FOB and carry delivery risk, so traders mainly sell Russian wheat at a cost and freight basis, Sovecon added.
Sovecon said Russia exported 400,000 tonnes of grains last week compared with 520,000 tonnes a week earlier.
In the domestic market, prices for wheat in roubles continued to rally to reflect earlier depreciation of the Russian currency against the dollar, Sovecon said.
Russia’s southern regions have started spring grains sowing amid favourable weather. As of March 18, spring grains were planted on 222,000 hectares compared with 178,000 hectares on the same date a year ago, Sovecon said.
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