Russian wheat export prices rise for 10th week in a row

Russian wheat export prices rose for the 10th week in a row last week supported by strong demand for cereals with high protein content, an agricultural consultancy said on Monday. Black Sea prices for Russian wheat with 12.5 percent protein content for December supply were at $184 a tonne on a free-on-board (FOB) basis at the end of last week, up $1 from a week earlier, Russian agricultural consultancy IKAR said.
SovEcon, another Moscow-based consultancy, quoted FOB wheat prices unchanged at $182.5 a tonne and maize (corn) prices up $1 at $172 per tonne. Russia exported 15.8 million tonnes of grain, including 12.5 million tonnes of wheat, between July 1 and November 23, the agriculture ministry said. The pace of grain exports was down 0.8 percent year-on-year.
Prices in the domestic market fell as unfavourable weather delayed supplies from several ports and the rouble strengthened slightly against the dollar in the first half of last week, SovEcon said. Domestic prices for third-class wheat fell 50 roubles on the week at 10,675 roubles ($164.6) a tonne in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.
Russia's threat to impose a quarantine on pig farms in the southern region of Krasnodar due to outbreaks of African Swine Fever (ASF), a measure that could ultimately affect some grain exports, had little impact on the market. The agriculture safety watchdog will decide on the quarantine this week. According to current rules quarantine would impose a special regime within 5 km of a farm affected by ASF.
According to SovEcon, signs of ASF were registered in the district where the Black Sea Tuapse and Yeysk ports are based. Both supplied 1.2 million tonnes of grain in July-September, or 9 percent of Russian grain exports during the period. New-crop sunflower seed prices rose 225 roubles to 20,400 roubles a tonne, SovEcon said. Domestic sunflower oil prices added 575 roubles and reached 49,250 roubles, while export oil prices were up $20 at $775 a tonne following a sharp rise in Chicago soyoil futures last week amid bullish US renewable fuels targets.