Export prices of wheat in Russia increased after declining crop forecasts

Export prices for Russian wheat new crop grew up amid lower crop forecast due to dry weather, including the Russian Ministry of agriculture.

According to IKAR, the price of the new harvest with a 2.5-percent protein content in Novorossiisk for delivery in July rose within the week by $4 to $199 per ton FOB.

SovEcon has recorded a rise for the week to 3% per ton in this class of wheat to $202 FOB with July delivery.
 
Agency ICAR and Ministry of agriculture last week lowered the forecast of the harvest in Russia due to the drought in the South of the country.

Writes SovEcon, the Agency sees no need now to reduce its forecast (wheat to 81.2 million tons, grain – 126,3 million tons).

“The condition of the crop improved slightly in may in the South and remains good in Central Russia and the Volga region”, – analysts write.

Since the beginning of the marketing season of July 1, 2019 to may 21, 2020 Russia exported 35.3 million tons of grain, which is 13% less than last year.

Wheat exports amounted to 30.2 million tonnes (10% less), barley – 2,73 million tons (40% less), corn – 2,37 million tons (7% less), SovEcon says, citing official customs statistics.

The rate of exports sharply decreased to 35.000 tons of wheat last week, about 170,000 tonnes a week earlier and 0.7 million tons in the last week of April, according to a review SovEcon.

The Agency expects exports in may to 2.0 million tonnes of grain, of which 1.5 million tonnes of wheat.

The domestic wheat market continued to decline in conditions of low activity of domestic buyers and exporters. Third class wheat fell in price by 150 rubles to 13.950 rubles per ton, fourth class – 205 rubles to 13.825 rubles per ton without transportation to the European part of Russia, according to a review SovEcon.

Sunflower prices rose by 225 roubles to 24.400 roubles per tonne on oil – by 150 rubles to 51.000 rubles per ton. Export prices for sunflower oil jumped $35 to $735 per ton FOB due to the recovery of China’s demand for vegetable oil.

The index of white sugar IKAR in Southern Russia rose to $370,84 per ton compared to $340,86 a week earlier, or to 26.30 rubles per kilogram from 25.20 rubles.

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