MOSCOW: Russian wheat export prices held steady at the end of last week while global benchmarks fell, supported by concerns over the size of the Black Sea region's new wheat crop, analysts said on Monday.
Russian wheat with 12.5% protein loaded from Black Sea ports was at $205 a tonne free on board (FOB) at the end of last week, up just $0.5 a tonne on the previous week, the SovEcon consultancy said in a note.
Another consultancy IKAR pegged new crop wheat at $206 a tonne, flat on the previous week. Global prices were under pressure following a US Department of Agriculture report that raised world wheat production forecasts by 4.9 million tonnes, as well as increasing its forecast for global stocks.
"World prices were under pressure after (the) bearish... report, while the Black Sea values are still supported by concerns about the size of the new crop," SovEcon said.
Though the US report mentioned improved crop conditions in Russia, however, it left its forecast for the Russian crop unchanged.
Russian analysts last week raised domestic crop forecasts on the back of more favourable weather conditions.
Russia's planting campaign is almost over, SovEcon said, adding that spring wheat had been planted on 12.4 million hectares compared to 11.9 million hectares in 2019.
Egypt's state grains buyer, the General Authority for Supply Commodities (GASC), bought 120,000 tonnes of Russian wheat in an international purchase tender last week.
"Payment terms were different - in the last tender a seller would receive a payment in 180 days; in the previous one - straight after delivery. Taking into account cost of financing the price for Russian wheat remained mostly unchanged," SovEcon said.
Russia exported 35.6 million tonnes of grain between July 1 last year and June 11, down 14% from the year-earlier period, SovEcon said. Of this, wheat exports accounted for 30.4 million tonnes.
June exports of grain were at 0.8 million tonnes, SovEcon said, including 0.5 million tonnes of wheat.
The state stockpile was further reduced last week after 12,000 tonnes of wheat were sold and it now stands at 0.4 million tonnes, a number which includes volumes that have been sold but not yet delivered.-Reuters
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