Commodities

Russian wheat export prices rise with global benchmark

Credit: REUTERS/SERGEY PIVOVAROV

Russian wheat export prices rose last week on the back of sharply higher prices in Chicago and expectations of a less impressive crop in Russia, analysts said on Monday.

MOSCOW, July 19 (Reuters) - Russian wheat export prices rose last week on the back of sharply higher prices in Chicago Wv1 and expectations of a less impressive crop in Russia, analysts said on Monday.

Chicago wheat futures recorded their largest weekly gain in six years last week as parched conditions for North American spring wheat and adverse weather in Europe and Russia stoked concern over global supplies.

Russian wheat with 12.5% protein loading from Black Sea ports for supply in August was $241 a tonne free on board (FOB) at the end of last week, up $3 from the previous week, the IKAR agriculture consultancy said in a note. 0#IKAR

Another consultancy, Sovecon, recorded a $5 rise to $239 per tonne of wheat. Barley was unchanged at $212, it said.

Both Sovecon and IKAR cut their estimates for Russia's 2021 crop last week.

"Weather (in Russia) is negative both for winter crops and spring crops, including corn and sunflower," Sovecon said, adding that this week is expected to remain hot and dry in most of the country's grain-producing regions.

Recent hot and dry weather in several Russian regions affected yields, with grain becoming too dry in some places, resulting in lower weight.

Russian harvesting is showing rising wheat yields but is still delayed compared with a year ago, Sovecon said, adding that "current yield dynamics point to potential further yield and crop downgrades".

Other Russian data provided by Sovecon and IKAR:

Product:

Price at the end of last week:

Change from week earlier

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

12,400 roubles/t ($167.59)

-125 rbls

- Sunflower seeds (Sovecon)

38,000 rbls/t

+200 rbls

- Domestic sunflower oil (Sovecon)

91,650 rbls/t

unchanged

- export sunflower oil (Sovecon)

$1,205/t

+$85

- export sunflower oil (IKAR)

$1,210/t

+$80

- soybeans (Sovecon)

47,800 rbls/t

unchanged

- white sugar, Russia's south (IKAR)

$548.4/t

-$6

($1 = 73.9920 roubles)

(Reporting by Polina Devitt Editing by David Goodman)

((Polina.Devitt@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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