Export prices for wheat of the Russian Federation continued to decline in anticipation of new crop

MOSCOW (Reuters) – Export prices for Russian wheat continued to decline last week due to improving forecasts of the new crop and after the fall of quotations in the world markets.

According to IKAR, the price of a ton of new crop wheat with 12.5-percent protein content and the delivery in August declined over the week to $197 from $199 FOB Novorossiysk.

SovEcon recorded a decline of $1.5 to $200,5 FOB.

“I have the feeling that the market expects a new crop of the countries of the Black sea region will further decline in wheat prices”, – stated in the review SovEcon.

Last week, IKAR raised its forecast for the harvest in 2020, and exports of wheat from Russia in the new season.

Meanwhile, the first data on crop yields in Southern Russia say that it is below last year by 15 to 40%, analysts say SovEcon.

In Russia almost completed the spring sowing campaign, which took place in the squares a few more last year: whole grain seeded 29.1 million acres (28,9 million in the previous year), wheat, 12.5 million hectares (12.0 million a year earlier).

Almost completed season 2019/20 marketing years for the period from July 1 to June 26, Russia exported 35,7 million tons of grain, but 15% less than the same period of the previous season. Wheat was exported 30.4 million tonnes, which is 12% less barley is 2.80 million tons (40% less), corn – 2,46 million tons (12% less), analysts SovEcon official data of the customs statistics.

Customs statistics and from the ports show that exports virtually stopped until a new crop, SovEcon said. Its analysts expect exports from Russia in June at the level of 550,000 tons of grain, including 350,000 tons of wheat.

In the domestic market the average price of wheat fell sharply: third class wheat fell by 750 rubles to 12.975 rubles per ton, fourth class by 925 rubles to 12.700 rubles per ton.

Sunflower prices declined over the week by 75 roubles to 26.250 rubles per ton, the price of crude oil remained at the level of 52.750 rubles per ton. Export prices of oil rose $5 to $770 per ton FOB. The price of soybeans decreased by 275 roubles to 28.850 rubles per ton.

The index of white sugar IKAR for the South of the Russian Federation decreased for the week to $380,02 per ton from $380,64, or to 26.40 ruble of 26.50 rubles per kilogram.

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