Export prices for wheat from Russia rose last week due to the firm rouble, rising domestic prices and a corresponding reluctance to sell in the agricultural sector.
Export demand remained strong last week. Egypt's state grain buyer GASC purchased 115,000 tons of wheat in Russia on Tuesday as part of an international tender process. Syria bought 200,000 tons of wheat. Russia is currently the world's largest exporter of wheat, while Egypt is Russia's largest buyer.
The price of Russian wheat with a protein content of 12% for delivery in December rose by $2 to $212/ton FOB at the end of last week, according to Russian analyst firm IKAR. SovEcon reports an increase of $0.50 to $213/ton. The price of barley remained unchanged at $188.50/tonne.
On the local market, prices for Class III wheat rose by 100 roubles/tonne to 11,750 roubles/tonne. This corresponds to USD 184.07/ton ex loading station.
Russia exported 21.7 million tons of grain since the start of the season in July 2019 and up to 12 December. This included 18.9 million tons of wheat. Year-on-year, exports fell by 15%.
SovEcon expects grain exports of 2.6 million tons (including 2.2 million tons of wheat) for December. This would be a decline of 12% compared to the previous month.
Source
HANSA Terminhandel
