MOSCOW: Russian wheat export prices rose last week but not as much as international exchange contracts did after US and Israeli attacks on Iran due to higher freight costs and insurance premiums, analysts said.
The price of Russian wheat with 12.5percent protein content for free-on-board (FOB) delivery in April was USD236 a metric ton at the end of last week, up USD2.50 from a week earlier, Dmitry Rylko, head of the IKAR consultancy, said.
“The FOB price is rising, but the price is rising more sharply in the ports of destination. It is rising less here, as the increase in freight and insurance premiums is also eating into it,” Rylko said.
SovEcon estimated the price for Russian wheat with 12.5percent protein at USD234 to USD236 a ton FOB, compared with USD233 to USD236 the previous week. The agency lowered its estimate for wheat exports in February by 0.1 million ton to 2.9 million tons. IKAR estimates wheat exports in March at over 3.5 million tons. Analysts said that the weather in ports has become more favourable for shipments.
Rail carrier Rusagrotrans analysts said that in March exports could reach 3.6 million tons thanks to improved weather conditions in ports and accelerated shipments. As a result, by the end of July-March of the 2025/26 season, wheat exports will almost match the level of the previous 2024/25 season for the same period for the first time since July, reaching 36 million tons, compared with 36.3 million tonnes a year earlier.
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