MOSCOW — Export prices for Russian
wheat halted a multi-week decline as major Western traders said
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they would stop handling Russian grain exports, and following a
report that Russia’s agriculture ministry had issued unofficial
guidance to support export prices.
International trading firms Cargill and Viterra last week
announced they would no longer handle Russian grain exports from
July 1. Louis Dreyfus Company joined them on Monday, saying that
“grain export challenges continue to increase.”.
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Prices for Russian wheat with 12.5% protein content,
delivered free on board (FOB) from Black Sea ports, were up $1
to $273 a tonne last week, the IKAR agriculture consultancy
said.
“Chatter about an unofficial recommendation from Russian
authorities to exporters not to sell wheat below $275-280/mt FOB
was also supporting the prices,” SovEcon analysts said in their
weekly note.
Russia on March 24 cited two sources as saying the
government wanted exporters to ensure prices paid to farmers
were high enough to cover average production costs, which would
mean keeping export prices for wheat at or above $275-280.
Russia exported 1.09 million tonnes of grain during the week
to March 24, 970,000 tonnes of which was wheat, SovEcon said.
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That was compared with 1.16 tonnes of grain and the same 970,000
tonnes of wheat the previous week.
SovEcon raised its estimates of Russia’s wheat exports in
March to 4.5 million tonnes from 4.3 million tonnes, up from 2.1
million tonnes in March 2022 and the highest level for March
since 2018.
Russia’s agriculture minister reported that the rate of
spring sowing is almost twice as high as last year: spring crops
were sown an area of about 1 million hectares.
Other Russian data provided by Sovecon and IKAR:
Product: Most recent data: Change from week
earlier
– Domestic 3rd class 11,550 rbls/t -225 rbls/t
wheat, European part
of Russia, excludes
delivery (Sovecon)
– Sunflower seeds 21,075 rbls/t -2,550 rbls/t
(Sovecon)
– Domestic sunflower 73,000 rbls/t -2,525 rbls/t
oil (Sovecon)
– Domestic soybeans 30,475 rbls/t -2,925 rbls/t
(Sovecon)
– Export sunflower $825/t -$15
oil (IKAR)
– White sugar, $708.26/t +$3.24
Russia’s south
(IKAR)
(Reporting by Olga Popova; Editing by Kevin Liffey)
