Russian wheat export prices fell for a fifth consecutive week last week.
Indeed, according to IKAR, Russian wheat with 12.5% protein content loading from BlackSea ports for supply in late Feb-Mar stood at $318 a tonne free on board (FOB) last week.
That was down $1 from the previous week.
Meantime, according to SovEcon, wheat export price was down $7 at $316 a tonne.
Export price for barley, was at $298 a tonne, meantime.
Domestic 3rd class wheat, European part of Russia, excludes delivery was at 15,050 roubles/t ($196.00), down 150 rbls or $5.22 per tonne, from prior week (Sovecon);
Sunflower seeds were at 37,375 rbls/t -100 rbls (Sovecon);
Domestic sunfloweroil was at 89,500 rbls/t +1,000 rbls (Sovecon);
Export price for sunflower oil was at $1,385/t +$5 (Sovecon);
Export price sunflower oil was at $1,375/t -$5 (IKAR);
Soybeans were at 44,050 rbls/t -200 rbls (Sovecon);
Whitesugar, Russia’s south, was at $662.5/t +$10.2 (IKAR).
($1 = 76.7850 roubles).
Outlook:
A weaker and volatile rouble, which remains under pressure amid the diplomatic showdown between Moscow and the West over Ukraine weighened a lot on Russian grain prices.
According to data from the Russian Hydrometeorological Center, in the first ten days of February, the overall conditions for winter crops remained satisfactory.
During this period, in the southern and northern Caucasus federal districts, temperatures were above seasonal norms, in some areas by 3-7 degrees.
It should be noted that the early vegetation of the crops would make them vulnerable in the event of late frosts.
This winter, there was a lot of snowfall in the main Russian wheat-growing regions, which protects the crops well.
Nevertheless, local operators closely monitor the temperatures: in the event of a significant oscillation between day and night, the risk of formation of an ice crust would be high.
Meantime, Russia’s 2022 grain crop is expected to reach 127 million tonnes, including 82.5 million tonnes of wheat, Russian agriculture consultancy IKAR said on Friday.
IKAR forecast grain exports in the 2021/22 season at 46 MMT.
According to the Interfax news agency quoting an executive of state-controlled United Grain CompanyRussia’s, grain intervention fund plans to buy 1.2 million tonnes this year.
It reported no details such as how much wheat would be in the planned purchases.
Meantime, last Friday the Russian agriculture ministry has amended the export tax for wheat, barley and corn for the week of Feb. 16-23, 2022.
It will be $92.8 on wheat, $74.1 on barley and $52.7 on corn.
Indicative prices will be $332.7 for wheat, $290.9 for barley and $260.3 for corn.
That is compared, with prior week (Feb 09-15) when the tax was $93.2 for wheat, $73.3 for barley and $52.7 for corn, while indicative price were $333.2 for wheat, $289.8 for barley and $260.4 for corn.
