Russia's wheat export prices show slight increase

Russian wheat export prices rose slightly after Russian grain won out in the latest Egyptian wheat tender, according to analysts.

Ordinary wheat with 11.5% protein content and bug damage of up to 1% rose to US$178.5 per tonne FOB Novorossisk, the price at which Egypt bought 180,000 tonnes of Russian wheat, from US$176, the Institute for Agricultural Market Studies (IKAR) said in a weekly note.

It said FOB prices at small ports were unchanged at US$150 per tonne for wheat with 11.5% protein content and US$152 with 12.5 %. Feed barley was traded at US$115-$119 with some indication of shortage.

Traders estimated new crop wheat to be priced around US$168 per tonne, IKAR said.

SovEcon agricultural analysts said that some exporters kept buying fourth-grade (ordinary) wheat to honour signed contracts, but others stopped purchases or lowered prices awaiting new crop grain.

They said bid prices for fourth-grade wheat, including delivery (CPT) to Novorossiisk, declined to RUB4,900-5,000 (US$159-US$162) per tonne from 5,000-5,100 a week before.

Bid prices at shallow ports were unchanged at RUB4,400-4,500 (US$142-US$146) per tonne (CPT), SovEcon said.

It said domestic prices rose slightly last week, with feed wheat, which added RUB50 (US$1.6) last week to RUB3,050 (US$99) per tonne on demand from animal feed makers, leading the race.