Wednesday, 02 September 2015 17:11
MOSCOW: Russia’s export prices for wheat fell further last week due to the rouble weakening and a decline in global benchmarks, analysts said.
Russia expects the third largest grain crop in its post-Soviet history this year, but its wheat exports have been constrained by a floating export tax that does not allow traders to fully benefit from a weaker rouble.
Black Sea forward prices for Russian wheat with 12.5 percent protein content stood at $ 180 per tonne on a free-on-board (FOB) basis at the end of last week, down $ 3 from a week earlier, agriculture consultancy IKAR said.
According to another agriculture consultancy, SovEcon, FOB wheat prices were down $ 3 at $ 181.5 per tonne.
Paris wheat futures are trading near a one-year low, while the rouble has been volatile due to a drop in oil prices and Western sanctions over the Ukraine conflict.
Domestic prices for third-class wheat rose 250 roubles from a week earlier to 10,050 roubles ($ 151) per tonne in the European part of Russia on an ex-works basis, SovEcon said. Domestic rye prices jumped 1,150 roubles to 7,150 roubles, it said.
Domestic grain prices will be under pressure soon if the rouble weakening continues as a large crop is hitting the market and exports are down year-on-year, SovEcon said.
Russia’s grain exports fell 37 percent, year-on-year, to 4.5 million tonnes between July 1 and Aug. 26, according to the Agriculture Ministry.
Its data include 3.3 million tonnes of wheat and 1.0 million tonnes of barley. However, official export data has been delayed by the wheat export tax accounting, analysts and traders said previously.
According to SovEcon, grain exports are only down 20 percent year-on-year.
Russian farmers have already harvested 71 million tonnes of all grains, including 49 million tonnes of wheat, from 57 percent of the total area.
They have started corn (maize) harvesting with low yields of 4.78 tonnes per hectare as crops in the southern regions have been affected by dry weather in August, SovEcon added.
SovEcon also said domestic sunflower oil prices rose 500 roubles to 57,500 roubles per tonne due to the rouble weakening last week, while October prices for sunflower oil were quoted down $ 20 at $ 710-$ 720 per tonne.
