Russian export prices for wheat remained flat last week as shippings were slow after delayed harvesting and a state wheat export tax launched on July 1, analysts said on Monday. Russia has exported 2.3 million tonnes of grains, including 1.4 million tonnes of wheat, since the start of the 2015/16 marketing year on July 1. The pace of grain exports is down 40 percent year-on-year, the agriculture ministry said in a note.
Black Sea forward prices for Russian wheat with 12.5 percent protein content were flat at $188 per tonne on a free-on-board (FOB) basis at the end of last week, the IKAR consultancy said. SovEcon agriculture consultancy also quoted FOB prices at $188 per tonne, but down $4.5 from a week earlier. FOB barley prices were down $4 at $178 per tonne, it added.
Domestic prices for third-class wheat were up 50 roubles compared with a week earlier at 9,350 roubles ($146) per tonne in the European part of Russia on an ex-works basis, SovEcon said. IKAR said the FOB Black Sea forward corn (maize) price index fell $13 to $170 per tonne despite dry weather in Russia's southern regions.
IKAR has lowered its 2015 corn production forecast to 11.5-12.5 million tonnes from a previously expected 12-13 million tonnes.
"A record corn crop - higher than 11.6 million tonnes - is still possible, but chances are smaller than a couple of weeks ago," it added.
Grain harvesting in Russia is gathering pace after rains delayed it in June and July. The agriculture ministry currently expects a 2015 grain crop of 101.5 million tonnes, of which 48 million tonnes have already been harvested.
Market participants expect the government to start buying grain on the domestic market for state stocks from Tuesday, IKAR added. The government plans to buy 2 million tonnes of grains this season.
SovEcon added that FOB Black Sea prices for crude sunflower oil were unchanged at $820-$830 per tonne, while domestic prices jumped by 3,675 roubles to 52,675 roubles per tonne due to the rouble weakening. October prices for sunflower oil were quoted at $750 per tonne, Sovecon added.
IKAR's white sugar price index for Russia's south was at $649.9 per tonne, down $64 from a week ago.
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