April 27, 2022

Wheat prices in Russia continue to rise thanks to exports

The IKAR agriculture consultancy said Russian wheat prices have continued to rise thanks to ongoing exports from its Black Sea ports, with prices up US$10 to US$380 free on board (FOB) for wheat with 12.5% protein content, Reuters reported.

Sovecon, another consultancy, said 590,000 tonnes of grains were exported from Russia last week, compared to 630,000 tonnes the week prior. They cited data from ports.

Russia's customs service said it has suspended the publication of its import-export data to avoid speculation.

Sovecon said Russia will be able to increase its exports for the upcoming July-June season because of high carry-over stocks, a record crop projection, and the expiry of a state export quota.

Sovecon also said the country's domestic market wheat prices dropped due to low demand from consumers and exporters, as well as increased supply from farmers. They said spring grains were planted on 1.8 million hectares as of April 19, unchanged from a year earlier.

Russia continues to export wheat even though the country is facing logistics and payment issues caused by Western sanctions imposed on Moscow over Russia's invasion into Ukraine.

Russia is the one of the biggest wheat exporters in the world.

-      Reuters