The country is one of the world’s major wheat exporters, with a favorable grain harvest, rising to 100 million tonnes, as it seeks to meet domestic market demand, Russian officials said. and replenish state reserves after a sharp drop in the rupee.
Wheat futures prices for the new wheat harvest, with 12.5% protein composition, were bid by market participants at $205/ton FOB, in the Black Sea, Dmitry Rylko, head IKAR said.
Prices for old-harvest wheat with 12.5% protein composition were offered at $225 a tonne, FOB Black Sea last week, IKAR added. The Russian agriculture ministry put the current price down slightly, to $213/ton FOB, down 7.8% from the previous week.
The Southern Federal District, Russia’s main wheat-exporting region, usually begins the harvest at the end of June.
The decline in Russian wheat prices was influenced by the ruble recovery, consultant SovEcon said. The rupee rose slightly against the US dollar last week, but is still down 47% from its level at the start of 2014.
At the end of last week, the price of domestic grade 3 wheat fell 75 rupees from the previous week, to 10,600 rupees a tonne in some European regions of Russia, SovEcon said.
Domestic wheat prices have also come under pressure from weak demand from exporters, with business falling after the government imposed a wheat export tax on February 1.
Russia’s grain exports in March are expected to remain steady from the previous month, and at 1.2-1.3 million tons, including 0.5 million tons of wheat, Rylko added.
The ministry put grain exports at 156,000 tonnes, including 51,000 tonnes of wheat, in the first four days of March.
Since the start of the marketing year on July 1, Russia has exported 24.7 million tons of grain, including 19 million tons of wheat.
Sunflower seed market, SovEcon said, sunflower seed prices fell 75 rupees, to 22,200 rupees a tonne, while crude sunflower oil prices were unchanged, at $750 per tonne FOB, Black Sea.
According to VINANET