Russian wheat export prices rose for the seventh consecutive week last week on the back of higher stock market prices in Chicago and Paris, a firmer ruble and concerns over Black Sea wheat stocks for the 2020 harvest.
Russian export wheat with a protein content of 12.5% for January loading rose $2 to $218/ton FOB at the end of last week, according to Russian agricultural consultancy SovEcon. The export price for barley fell by $1.50 to $185/ton.
Ikar, another major Russian agricultural consultancy, reports a stable price compared to the previous week, also at $218/ton. Russia is the world's largest wheat exporter.
After the dry December, soil moisture reserves for sowing Russian winter grains remain low, and rain is urgently needed once winter is over, SovEcon said.
Temperatures in Russian growing regions are between 5 - 9 degrees Celsius, significantly warmer than normal, SovEcon said. This factor increases the risk of frost damage if cold temperatures arrive in the coming weeks. However, temperatures of 2 - 5 degrees Celsius are expected over the next two weeks.
In Russia, the weather is drier than usual, while rainfall in Ukraine last week helped to improve the situation.
Russia harvested slightly less wheat than expected in 2019, preliminary data from last week showed. The Russian rouble rose against the US dollar to its highest level since May 2018.
Russia exported 23 million tons of grain, including 20 million tons of wheat, from the start of the 2019/20 season on 1 July to 26 December. Total grain exports fell by 18% year-on-year.
Domestic prices for Class III wheat in the European part of Russia remained at 11,650 roubles per tonne on an ex-works basis at the end of last week, according to SovEcon.
Source
HANSA Terminhandel
