Export prices for Russian wheat and domestic prices also rose last week. Russian wheat with a protein content of 12.5% loaded from ports on the Black Sea rose by $ 10 at the end of last week to $ 217 a ton free on board (FOB), according to SovEcon. The barley remained unchanged at $ 177 per ton.
IKAR put wheat at $ 222 a ton, up $ 15. The prices for the new crop rose slightly to USD 198 per tonne.
The Russian Ministry of Agriculture proposed a quota of 7 million tons for Russian grain exports for the second quarter on Friday. The government's approval of the quota could be quick, SovEcon added, adding that the limit is reasonable and is unlikely to be reached.
However, Russia could later take other steps to slow down exports as domestic prices are still rising.
Buyers are putting more pressure on the authorities and asking them to regulate the market, SovEcon said. Domestic flour prices rose last week by 700 rubles to 18,875 rubles per ton.Some traders announced to SovEcon last week that it was difficult for them to obtain phytosanitary export certificates for wheat, peas and oilseeds.
Russia has exported 30.2 million tons of grain since the start of the 2019/20 season and March 26, a 17% decrease from a year earlier, SovEcon said, citing customs data. Wheat exports accounted for 25.9 million tonnes of this.
The Department of Agriculture said last week that it was preparing to sell grain from state stocks. It stores 1.8 million tons of grain, mainly in Siberia.
The weather remained dry in the southern regions of Russia, with the exception of some rain in part of the Stavropol and Rostov regions, according to SovEcon. The Volga and central regions had some rain again last week.
SovEcon added that it will be relatively dry in the next two weeks, which is good for sowing summer crops, but increases the risk for the 2020 harvest in the southern regions.
Source
HANSA Terminhandel
