Russia's wheat export prices fell for the third consecutive week last week due to strong global competition and declining wheat futures on the Chicago Board of Trade.
Egypt's state-owned grain purchaser GASC bought 180,000 tons of wheat of Russian origin and 180,000 tons of wheat of Romanian origin last week. Egypt is the second largest buyer of Russian wheat after Turkey.
The price of export wheat with 12.5% protein at Russian seaports dropped last week by $ 6.00 to $ 220 / tonne FOB, reports the agricultural consultancy SovEcon. Barley remained stable at $ 192 / ton.
IKAR, another Moscow-based agricultural advisory firm, reports a $ 3 drop in wheat to $ 220 / tonne.
Russia exported 26.5 million tons of grain, including 22.5 million tons of wheat, as of February 13 in the current marketing period 2019/20. Overall, Russian grain exports fell by 19% in the current season compared to the previous year.
SovEcon expected the export pace to increase in February, but so far this has not been the case.Things could improve over the next few weeks as traders' margins gradually recover, the company said.
SovEcon also said domestic prices in the European part of Russia could come under additional pressure because the government approved subsidies last week for the transportation of 2.1 million tons of grain by rail from Siberia and Urals to southern ports and other regions. In some regions of the European part of Russia, temperatures dropped last week, but the cold snap was short and probably had no negative impact on winter crops.
Source
HANSA Terminhandel
