MOSCOW: Russian wheat export prices fell for a sixth consecutive week last week as the market remained focused on tensions between Moscow and Western countries over Ukraine.
Russia and Ukraine are major global wheat exporters with Egypt among the main buyers. They supply their grain to other countries mainly via the Black Sea. “Actual grain flows neither from Russia nor from Ukraine have been affected directly so far,” Sovecon agriculture consultancy said in a note.
Freight could become more expensive with higher insurance premiums and some buyers could start considering other suppliers if the conflict escalates, it added. Russian wheat with 12.5% protein content loading from Black Sea ports for supply in late February-early March stood at $312 a tonne free on board (FOB) last week, down $6 from the previous week, IKAR, another consultancy, said.
Sovecon pegged wheat and barley down $3 to $313 a tonne and $295 a tonne, respectively.
Russian wheat exports are down by 45% since the start of the 2021/22 marketing season on July 1 because of a smaller crop in 2021 and an export tax that had been set at $91 a tonne for Feb 23-March 1.
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