December 27, 2022

Wheat prices in Russia drop due to weaker rouble

Analysts said wheat prices in Russia declined last week due to a weaker rouble currency and high local supplies of the commodity amid a record harvest, with sea exports also on the rise, Business Recorder reported.

A note from the IKAR agriculture consultancy said prices for Russian wheat with a 12.5% protein content and for supply from Black Sea ports in January were US$307 a tonne free on board (FOB) on Friday night, down US$5 from a week earlier.

Another consultancy, Sovecon, who cited port data, said Russian grain exports increased to 1.1 million tonnes last week from 840,000 tonnes the week before, as the weather in the Black Sea improved following storms.

Sovecon said wheat prices for immediate delivery dropped by US$1 to US$307–311 per tonne.

Sovecon also said the Russian Ministry of Agriculture has already purchased 3 million tonnes of grain from the domestic market for the nation's state stockpile during the current July-June season.

After a period of dry weather, rains began to fall last week in Russia's southern region, a major producer of winter grains. More precipitation is predicted this week, Sovecon said, indicating that the conditions for sowings are improving.

-      Business Recorder