Monday, 03 August 2015 23:19
MOSCOW: Russian wheat prices declined further last week as the harvest picked up pace after delays caused by heavy rain, analysts said on Monday.
As of July 30, Russian farmers had harvested 37 million tonnes of grain from 24 percent of the total area, with yields at 3.38 tonnes per hectare.
Black Sea forward prices for Russian wheat with 12.5 percent protein content were at $ 188 per tonne on a free-on-board (FOB) basis at the end of last week, down $ 3 from a week earlier, the IKAR consultancy said.
SovEcon agriculture consultancy quoted FOB wheat prices flat at $ 192.5 per tonne. However, domestic prices for third-class wheat were down 75 roubles compared with a week earlier at 9,300 roubles per tonne in the European part of Russia on an ex-works basis, SovEcon said.
Russia’s harvest this year has been delayed by rains, which together with export duties introduced by the government on July 1, have cut exports from one of the world’s key wheat producers.
Russia shipped just over 2 million tonnes of grain in July, the lowest amount for that month in the last six years, IKAR said. Wheat exports are estimated at 1.3 million tonnes.
The country’s August grain exports are expected to return to normal levels of early marketing season and to exceed 3 million tonnes, it added.
Agriculture Minister Alexander Tkachev said on Monday Russia’s 2015 grain harvest could reach 101.5 million tonnes.
SovEcon upgraded its 2015 grain crop forecast by 1 million tonnes to 97 million tonnes due to more favourable weather, it said in a note.
The wheat crop estimate was raised by 1.5 million tonnes to 57.5 million tonnes.
IKAR downgraded its maize (corn) harvest forecast due to persistent hot weather in Russia’s southern regions by 500,000 tonnes to 12-13 million tonnes and said could cut it further.
SovEcon added that FOB Black Sea prices for crude sunflower oil were unchanged at $ 820-830 per tonne.
