February 28, 2023

Russian wheat prices decline in line with global trends and higher domestic supply

Analysts said Russian wheat prices fell last week due to a downward trend in the international markets, weak exporter demand, and a growing domestic supply, Nasdaq reported.

The market is still awaiting information on whether a deal that guarantees safe passage for grain exports from the Black Sea will be extended for another month.

Last week, Russian President Vladimir Putin spoke with his Turkish counterpart Tayyip Erdogan about the Black Sea Grain Initiative, which permits grain to be exported from three Ukrainian ports despite a Russian blockade.

The initiative is up for renewal next month, but Russia has made it clear that it is dissatisfied with some aspects of the arrangement.

The IKAR agriculture consultancy said prices for Russian wheat with a 12.5% protein content that is delivered free on board (FOB) from Black Sea ports dropped US$3 to US$296 per tonne last week.

Dmitry Rylko, chief executive officer of IKAR, said that demand is low and there is pressure from Europe and Australia.

Port data cited by the Sovecon consultancy showed Russian wheat exports dropped from 730,000 tonnes the previous week to 530,000 tonnes last week.

-      Nasdaq