Russian wheat export prices rose in the last week due to strong demand, slowing deliveries from the exporting regions of southern Russia.
Higher crude oil prices ensured a fixed ruble exchange rate against the US dollar. Black Sea wheat with 12.5% protein for delivery in April / early May was $ 214.50 / ton FOB at the end of last week, according to agricultural advisory firm IKAR, up $ 2.50 from the previous week.
SovEcon reports a price of $ 213.00 / ton FOB (+ $ 3.00), while corn prices remained stable at $ 203.00 / ton. After the rapid devaluation of the ruble in the previous week, many producers have taken a wait and initially observed the further development.
As of April 18, Russia exported 42.3 million tonnes of grain in the current 2017/18 marketing year, of which 33 million tonnes was wheat. The grain exports are currently 42% higher than those at the same time last year.
SovEcon expects higher exports in April than initially thought. The forecast for 2017/18 has therefore been increased by 1.7 million tonnes from 50.2 million tonnes to 51.9 million tonnes. For wheat, the forecast was raised by 1.4 million tonnes to 39.7 million tonnes.
The summer wheat sowing in Russia is completed on April 19 on 1.9 million hectares or 6% of the planned area (previous week: 1.9 million hectares). At the same time last year there were 5.5 million hectares. The time lag is explained with the cold and rainy weather in central Russia. No improvement in conditions is expected by the weekend. Sowing in the Volga region is also delayed for the same reasons. In the south of Russia, the main growing region for export, the soil and seeding conditions are excellent.
The prices of domestic wheat of class 4 rose by 275 rubles to 8,600 rubles ($ 139) at the end of last week for the European part of Russia.
