Russia: Drought and strong demand are pushing wheat prices

Wheat export prices in Russia rose for the fourth time in a row last week. Analysts cited dry weather in major growing regions and the high demand from importers as the reason for this. The winter wheat sowing for the 2021 harvest also took place in soil that was too dry. In the past two weeks, however, it has rained a little in some regions.
Russian wheat with a protein content of 12.5% loaded in Black Sea ports for delivery in November was $ 257 / tonne on a FOB basis late last week. That's an increase of $ 6 compared to the previous week, reports the Russian agricultural consultancy Ikar. SovEcon reports an increase of $ 7 to $ 255 / tonne while Barley rose $ 3 to $ 210.
Domestic wheat prices continued to surge due to strong demand from both domestic consumers and exporters.
"Farmers are cautiously observing the steadily growing market, which still expects higher prices," said Sovecon. "At the same time, rumors of export restrictions and the favorable ruble-dollar ratio could lead them to sell more."
The Russian Ministry of Agriculture has announced that it will set a quota for Russian grain exports from January to June. It is not yet known how big it will be.
The ruble hit a monthly high against the dollar late last week but has weakened since then.

Hansa Terminhandel GmbH
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