The export prices for Russian wheat stabilized last week for the first time after seven consecutive weeks with falling prices, reports the agricultural consultancy SovEcon. The falling ruble exchange rate boosted wheat exports. Meanwhile, domestic prices rose and there is talk of possible export restrictions.
Russian wheat with a protein content of 12.5% loaded at ports on the Black Sea remained unchanged at $ 207 per ton FOB at the end of last week, according to SovEcon. Barley dropped $ 4 at $ 177 a ton.
Grain exports from Russia, the world's largest wheat exporter, have increased in the past two weeks as the ruble fell sharply against the dollar due to the spread of the corona virus and weak oil prices.
The Russian government has asked the Ministry of Agriculture and other officials to come up with proposals to limit the export of food, essential products or medicines. The proposals should be ready by March 25 and then updated weekly.
It was not clear what the Ministry of Agriculture would suggest.Last week there was enough agricultural food, including grain, in Russia and no deficit was expected before the new harvest arrives in the summer.
"There is still a lot of speculation and rumors about possible restrictions, especially after the ruble has been weakened," SovEcon said last week.
“At that point, we hadn't heard any plans to limit exports. In the near future, we could take some verbal measures to cool the market or slow down exports, "it said.
However, SovEcon believes the risk of restrictions increased after domestic ruble prices rose sharply last week and some farmers refused previously agreed offers and refunded advance payments to sellers.
"Unlike previous cases, however, many grain owners are willing to sell at relatively reasonable prices," said SovEcon, as they need funds to pay for the summer sowing and clear the warehouses before the new harvest arrives in the summer .
Source
HANSA Terminhandel
