Russian wheat export prices fall on harvest forecasts

MOSCOW: Russian wheat export prices fell again last week, weighed down by forecasts for a relatively strong next harvest, as well as a strengthening rouble, analysts said on Monday.

Black Sea prices for Russian wheat with 12.5 percent protein content and for delivery in April were $222 per tonne on a free on board (FOB) basis at the end of last week, down $4 from a week earlier, Russian agricultural consultancy IKAR said in a note.

"Prices are falling against the backdrop of the new harvest, which is forecast to be quite good. So there will be an even more noticeable fall then, I think," IKAR analyst Dmitry Rylko said.

SovEcon, another Moscow-based consultancy, quoted FOB wheat prices down $2.5 at $223 a tonne, compared to a drop of $10 last week.

The rouble exchange rate is working against exporters, analysts from the consultancy said.

The country exported 35.4 million tonnes of grain from the start of the season on July 1 to March 14, unchanged from a year ago, according to SovEcon. That included 29.7 million tonnes of wheat, up 5 percent from a year ago.

Domestic prices for third-class wheat were unchanged at  12,000 roubles ($187.04) a tonne at the end of last week in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.

Sunflower seed prices were down 375 roubles to 19,225 roubles a tonne, SovEcon said. Domestic sunflower oil prices fell by 350 roubles to 43,350 roubles a tonne, while export prices remained flat at around $650 a tonne.

IKAR said its white sugar price index for southern Russia was $516.82 a tonne on March 15, down $4.14 from a week earlier.