Russian export wheat registered the fourth consecutive weekly price drop last week due to strong competition with major exporting nations. However, the pace of the downturn has slowed, reports the Russian agricultural consultancy SovEcon. Global commodity markets have come under pressure due to the risks associated with the coronavirus outbreak.
The prospects in Russia for this year's Black Sea harvest are good so far. SovEcon expects a harvest of 83-87 million tons of wheat, which would mean an increase compared to the previous year. In the Ukraine, the wheat harvest is expected to be between 26 and 28 million tons.
The price of Russian export wheat with 12.5% protein loaded at Black Sea ports was $ 218 / ton FOB at the end of last week, $ 2 lower than the previous week. Barley also dropped $ 2 to $ 190 / ton.
However, the decline in price has slowed in Russia as Russian wheat regained competitiveness after the price dropped $ 6 the previous week.
In Chicago, wheat futures fell for the fourth time in a row on Monday because the rapid spread of the corona virus is also putting pressure on commodity and stock markets outside of China.
Russia, Ukraine and Romania compete with each other for the market in North Africa, the Middle East and Asia via the Black Sea.
The weather conditions in Russia for the 2020 harvest are good with above-average temperatures, reports SovEcon. It rained in central Russia, the Volga region and parts of southern Russia last week. Further rainfall is expected within the next two weeks.
Since the beginning of the current marketing period 2019/20 (July to June), Russia has exported 27 million tons of grain, including 23.3 million tons of wheat. Total grain exports decreased by 19% compared to the previous year.
Source
HANSA Terminhandel
