Russian wheat prices flat as rain eases tension

Rain in the Russian south lessened the pressure on wheat prices last week but new concerns have arisen over the crop in Siberia and the Urals, where precipitation has been scarce, analysts said on Monday. "Rains in the South of Russia eased tension there last week, although dryness remains in a vast area of Voronezh, Volgograd, Saratov, Samara, Lipetsk, Tambov and Penza," The Institute for Agriculture Market Studies (IKAR) said in a note.
Global wheat prices have risen in recent weeks on concerns that adverse weather in the world's top suppliers the United States, Russia and Australia are affecting output. The prices of benchmark Chicago wheat futures climbed more than 17 percent in the week to May 20, its biggest weekly gain in 16 years.
Russia's state forecaster said the key southern agricultural regions saw overnight rains following a recent dry spell, with further rainfall expected this week. Deep water wheat export prices were at $272-275 per tonne last week with limited market activity, IKAR said. It did not give an estimate for May 14-20, citing trader uncertainty.
SovEcon agricultural analysts said in a weekly note the purchase price of wheat with 11.5 percent protein content in Russian deep-water ports was flat last week and stood at 7,600-7,700 roubles ($240) on a carriage-paid-to (CPT) basis. Concerns over the new crop may switch to Urals and Siberian regions by the end of May because of a low level of moisture in the soil, it said.
As of May 20, Russian wheat exports exceeded 20 million tonnes from the start of the season, while total Russian grain exports amounted to 25.75 million tonnes, IKAR reported, adding preliminary prices for the new harvest were estimated at $268-271 per tonne.
For sunseeds, the domestic price index fell to $436 per tonne from $449 per tonne and in rouble terms decreased to 13,830 roubles per tonne, down 70 roubles. Crude sunoil prices were down to $1,010 per tonne from $1,145 per tonne. Domestic white sugar prices slightly strengthened in roubles to 24,600 per tonne from 24,300 per tonne, but fell in dollars to $778 per tonne, down $7, IKAR added.