Export prices for Russian wheat rose last week as a result of rising wheat prices in Chicago, the stronger rouble exchange rate, demand from Egypt and weather-related concerns about the 2020 Black Sea harvest.
Egypt's state grain buyer GASC purchased 300,000 tons of wheat from Russia, Ukraine and Romania last week. The three countries are competing for supplies from their Black Sea ports to Africa and Asia. Russia is the world's largest wheat exporter, while Egypt is the second-largest buyer after Turkey.
The price of Russian wheat with a protein content of 12.5% loaded from Black Sea ports for delivery in January rose $4 to $222 a ton last week, SovEcon reports. Barley remained unchanged at $185 per ton.
Agricultural consultancy ICAR reported a price increase of $2.5 to $220.5 per tonne.
Russia exported 23.7 million tons of grain since the start of the 2019/20 season on July 1 to January 10, including 20.6 million tons of wheat, SovEcon said, citing customs data. Total grain exports fell by 18% compared to the previous year.
The Russian winter remains unusually warm and dry for winter grain stocks. Temperatures love 3 to 12 degrees Celsius above normal in most wheat-growing regions, SovEcon said. Some regions had precipitation earlier in January, but the overall accumulated level remains well below normal.
There is almost no snow cover in the North Caucasus, while fields in the Volgograd and Central regions are covered with 2-5 mm of snow. The weather is expected to get colder soon, but still warmer than the norm, they said.
Wintering damage is obviously not a problem in the current weather conditions, but the increasing lack of moisture is, SovEcon said. Wheat vegetation will start in the southern regions in the second half of February.
Many traders are only returning to work today after the Christmas vacations in Russia (January 1-8).
Source
HANSA Terminhandel
