Russian wheat prices have risen for the fifth week in a row, boosted by a stronger rouble and demand from Egypt, the world's largest wheat importer, analysts said on Monday. Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), said on Friday it had bought 360,000 tonnes of Russian, Ukrainian and Romanian wheat.
Black Sea prices for Russian wheat with 12.5 percent protein content for March supply were $191 per tonne on a free-on-board (FOB) basis at the end of last week, up $3 from the previous week, Russian agricultural consultancy IKAR said.
SovEcon, another Moscow-based consultancy, quoted FOB wheat at $190.5 a tonne at the end of last week, up $1 from a week earlier, and maize (corn) prices unchanged at $177 per tonne. IKAR also said FOB prices for the new wheat crop with a 12.5 percent protein content and for July-August delivery rose $2 to $177 per tonne.
Prospects for Russia's 2017 grain crop remain good as winter grain sowings are covered with deep snow and temperatures are far from the critical levels that could damage sowings, according to SovEcon. The rouble has strengthened 5 percent against the dollar so far this year, making Russian grain less competitive globally and heightening concerns among some analysts that the state grain export forecast for the 2016/17 marketing year of 37.5 million tonnes may not be reached.
Russia exported 23.5 million tonnes of grain between July 1 and February 15, down 1.5 percent from a year earlier, including 18.3 million tonnes of wheat, the agriculture ministry said. Domestic prices for third-class and fourth-class wheat, excluding delivery costs, both fell by 50 roubles to 10,550 roubles ($182) a tonne and to 9,050 roubles, respectively, in the European part of Russia at the end of last week, according to SovEcon.
Sunflower seed prices fell 50 roubles to 19,750 roubles a tonne, SovEcon said. Domestic sunflower oil prices fell 925 roubles to 44,575 roubles, while export prices were down $5 to $745 a tonne. IKAR's white sugar price index for southern Russia had risen $7 to $542 a tonne as of February 20.
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