MOSCOW: Russian wheat export prices were higher towards the end of last week, mainly due to the escalation in the Strait of Hormuz, while restrictions on vessels entering the Sea of Azov in effect since Friday evening have not yet been reflected in prices, according to experts and market participants.
Russian authorities imposed “security restrictions” on access to the Sea of Azov via the Azov-Don sea channel and the Kerch Strait on Friday evening, sources told Reuters.
The duration of the restrictions, which potentially cut off a quarter of the country’s grain exports, has not been specified.
Exporters’ purchase prices in roubles at ports remain at Friday’s levels for the time being. As exchange market indicators rise, FOB prices may go up, but the current uncertainty means it is not possible to quote actual prices, one exporter told Reuters.
“There are no actual purchases yet.
Furthermore, even if prices do rise, the increase in freight costs could play a role… But everyone is still waiting for further clarification; everything is on hold for the time being,” he said.
The price of Russian new-crop wheat with 12.5percent protein content for free-on-board delivery in August was up USD2 at USD228 a ton at the end of last week versus the week before, said Dmitry Rylko, head of IKAR consultancy.
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