Russian wheat prices up sharply on strong demand, higher global benchmarks

MOSCOW: Russian wheat export prices rose for the fourth week in a row last week on strong demand from Turkey, Egypt and other major importers and higher Chicago wheat prices, analysts said on Monday.

Russian wheat with 12.5pc protein loading from Black Sea ports and for supply in October was at $235 a tonne free on board (FOB) at the end of last week, up $11 from the previous week, agriculture consultancy IKAR said in a note.

Sovecon, another Moscow consultancy, pegged wheat up $6 at $228 a tonne at the end of last week and barley up $3 at $192 a tonne.

Domestic wheat prices also rose sharply amid strong demand from exporters and domestic buyers, Sovecon said, adding that the rapid price rise increased the risk of some form of state intervention if there were concerns about securing domestic supply.

Some Russian farmers are not in a rush to sell their wheat and prefer selling sunflower, which is at a record high price due to low harvesting yields.

The weather remains dry for winter wheat sowing, but the moisture reserves in soil can still be replenished if rains arrive in September-October, Sovecon said.

It also said that delivery costs rose in Russia as grain export terminals and elevators are starting to follow tougher regulation of truck weight.