RUSSIA: Russian wheat export prices rose last week amid active supplies from the country’s Black Sea ports, some supplies from the Azov Sea and higher global prices for wheat in Chicago, analysts said on Monday.
“Exports are active, but there are some signs of weakening,” Dmitry Rylko, the head of the IKAR agriculture consultancy, said.
Russia, one of the world’s largest wheat exporters, continues exporting its commodity despite the Western sanctions imposed on Moscow over the Ukraine crisis that have complicated trade logistics and payments.
“There are new deals, but not too many, and we see a very limited number of countries: Turkey as prime destination, followed by Iran and Egypt,” Rylko added.
Prices for wheat with 12.5% protein content for supply in May from the Black Sea ports were up $2 to $370 free on board (FOB) at the end of last week, IKAR said, adding that the price range remains wide.
Sovecon, another consultancy, said that Russia exported 630,000 tonnes of grains last week, compared with 400,000 tonnes a week earlier.
Wheat prices in the domestic market fell amid weakening demand from those exporters who are approaching the limit of their export quotas and are concerned about higher export tax.
In the sunflower oil market, Russia set its export tax at $372 per tonne for May, up from $313 per tonne in April, the agriculture ministry said last week.
The weather remains good for Russia’s spring grain sowing. By April 14, spring grains were planted on 1.3 million hectares, against 1.1 million hectares a year earlier, Sovecon said.
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