Russian wheat export prices fell in the wake of weakness in Chicago and Paris in the past week, as well as the rise in the ruble against the US dollar and active exports.
Russian export wheat with 12.5% protein delivered in April last week cost $ 208 based on FOB, down $ 1 from the previous week, according to Russian agricultural consultancy IKAR.
SovEcon reports a price of $ 207.50 / ton FOB (- $ 0.50), while barley remained unchanged at $ 216 / ton. Corn rose $ 11 to $ 201 / ton due to the currently strong global corn demand of Ukrainian origin. Some market participants believe that the conflict over protective tariffs between the United States and China could increase China's demand for corn in Ukraine. Russia's supplies to China are competitive only from Russia's regions far to the east.
As of March 14, Russia exported 37.7 million tons of grain during the current marketing year 2017/18, of which 29.4 million tons were wheat. Exports are now 40% higher than at the same time in the marketing period 2016/17.
SovEcon expects grain exports totaling 49.4 million tonnes this season, of which 38 million tonnes will be wheat.
In the three strongest export regions in the south of Russia, the grain stocks of the farms fell below those of last year. Total grain stocks on farms, trade and processing companies (excluding small farms) were 19.3% as of March 1 at 38.3 million tonnes. over the stocks last year on March 1st. This reports the state statistics office Rosstat.
SovEcon has increased its forecast of grain exports from Russia by 800,000 tonnes in 2017/18 to 50.2 million tonnes. The forecast for wheat exports has been increased by 300,000 tonnes to 38.3 million tonnes. The domestic prices for wheat of class 3 in the European part of Russia remained unchanged at 8,575 rubles (€ 150,71) ex works.
