Russia. Forward prices for new crop wheat rose by USD 8 last week

Old-crop sales are at a bottom level. Only major companies still operate on previously accumulated grain stocks, reports UkrAgroConsult.

According to the Russian State Statistics Service, growing, procuring and processing entities (excluding small companies) held 19.3 MMT of grains as of May 1 (down 28% year-on-year). Wheat inventories in the country totaled 11.4 MMT (-33%), including 2.4 MMT in the south (-43%), or roughly as much as in 2016.

Pushed up by global market trends, forward prices for Russian new-crop wheat with 12.5% protein closed the week up another $8/MT FOB, July-August delivery.

The year-over-year spread in forward prices reduced to $7-8/MT FOB against $15/MT FOB a week earlier.

More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior, crop conditions and progress in harvesting/planting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Grain" by UkrAgroConsult.

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