Export prices of Russian wheat pushed lower by new crop, low demand

This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, May 29 (Reuters) - Export prices of Russian wheat are softening further in anticipation of a new harvest and amid low demand from global importers, analysts said.

A deal to allow Ukraine to export its grain safely across the Black Sea was extended last week for two months.

The prices of Russia's new wheat crop with 12.5% protein content, delivered free on board (FOB) from the Black Sea, was assessed at $230 a tonne compared to $242 a tonne from the previous week for the old crop, the IKAR agriculture consultancy said.

The Russia-focused agricultural consultancy Sovecon estimates total Russian wheat exports in May at 3.8 million tonnes, compared to 1.2 million tonnes in May 2022 and 1.5 million tonnes on average.

Russia exported 1.07 million tonnes of grain last week compared to 1.21 million tonnes a week earlier, including 0.97 million tonnes of wheat compared to 1.07 million tonnes a week earlier, Sovecon wrote in its weekly note, citing port data.

As of May 25, 24.6 million hectares of crops were sown, compared to 22.3 million hectares by that date in 2022, of which 11.1 million hectares were under spring wheat (9.6 million hectares in the same period of 2022).

Sovecon noted dry weather in several regions of the country.

"There is growing concern about crop conditions in Siberia and the Urals... Current conditions for these regions are challenging but it’s a bit too early to get too concerned. If plants get even light precipitation in early June and something more substantial in the second half, the yield potential impact could be limited," analysts said.

Other Russian data provided by Sovecon and IKAR:

Product:

Most recent data:

Change from week earlier

- Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon)

11,100 rbls/t

-25 rbls/t

- Sunflower seeds (Sovecon)

21,500 rbls/t

-400 rbls/t

- Domestic sunflower oil (Sovecon)

68,675 rbls/t

-1,175 rbls/t

- Domestic soybeans (Sovecon)

30,400 rbls/t

-200 rbls/t

- Export sunflower oil (IKAR)

$740/t

-$40/t

- White sugar, Russia's south (IKAR)

$756.44/t

+$11.81

Russia has no plans to halt wheat exports - sources

(Reporting by Olga Popova; Editing by Gareth Jones)

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