Russian wheat export prices rose for the seventh consecutive week last week.
According to the IKAR, indeed, Russian wheat with 12.5% protein loading from Black Sea ports for supply in late September or early October was at $299 a tonne free on board (FOB) at the end of last week, up $4 from the previous week.
In contrast, SovEcon pegged wheat and barley prices down by $1 to $298 per tonne and $262 per tonne, respectively.
Domestic 3rd class wheat, European part of Russia, excludes delivery, was at 15,200 roubles/t -225 rbls, ($206.5) (Sovecon);
Sunflower seeds were at 37,200 rbls/t +800 rbls (Sovecon);
Domestic sunfloweroil was at 96,175 rbls/t unchanged (Sovecon); Export sunflower oil was at $1,300/t +$20 (Sovecon);
Export sunflower oil was at $1,290/t -$10 (IKAR);
Soybeans were at 50,100 rbls/t +375 rbls (Sovecon);
White sugar, Russia’s south, was at $600/t +$6.7 (IKAR).
($1 = 73.5930 roubles)
Outlook
According to SovEcon, Russian wheat needs to move lower to compete with other origins.
It’s true, Russian wheat exports sped up last week, but only because the state export tax is set to rise sharply from Sept. 1, SovEcon said in a statement.
Consequentially, SovEcon cut its forecast for Russia’s 2021/22 wheat exports to the lowest in five years citing a smaller crop and competition with Ukraine and other suppliers.
On the other hand, Russian domestic wheat prices fell last week, as many consumers and exporters started to lower bids and as some of them expect the export tax to rise further.
