July 12, 2012

 

Russia begins first new crop wheat export sales

 

 

Trading executives said Wednesday (July 11) that Russia has begun making its first new-crop sales of wheat that will be harvested in the next few weeks.

 

Trading executives said Wednesday (July 11) that Russia has begun making its first new-crop sales of wheat that will be harvested in the next few weeks.

 

Small volumes have already been sold and demand is expected to pick up this month due to a drought in the US and rains in Western Europe, they said on the side lines of the World Sustainable Agriculture Congress.

 

The latest offers are around US$300 a tonne and US$291/tonne, free on board, for 12.5% and 11.5% protein wheat, respectively, but buyers are pressing for lower prices, said an executive with a global trading company.

 

Prices have gained US$40/tonne in the past one month. They may rise further as Russia's crop will be significantly smaller than a year earlier, while US spring plantings have been hit by drought in some areas, an executive said.

 

Russia's output and exports are forecast to fall 13% and 44% to 49 million tonnes and 12 million tonnes, respectively, in the year from July 1, the London-based International Grains Council has said.

 

IGC has forecast that Ukraine's output and exports will also fall 42% and 34% to 13 million tonnes and 3.5 million tonnes, respectively.

 

Ukraine's 11.5%-protein wheat is now offered around US$295/tonne, FOB, for bulk shipment in early September, traders said.

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