MOSCOW: Russian wheat export prices interrupted their rise last week due to weak demand and shrinking margins for exporters, despite expectations of lower March shipments, analysts said on Monday.
The price for Russian wheat with 12.5% protein for FOB delivery in late March decreased by $3 to $248 per metric ton, according to IKAR consultancy head Dmitry Rylko, who noted that Russian wheat was losing competitiveness to European wheat.
“There’s just no demand”, he said.
The Sovecon consultancy placed the prices for Russian wheat with the same protein content between $248 and $252 per ton FOB, slightly up from $247 to $251 the previous week. Russian FOB values climbed a few dollars in the first half of the week but edged lower later.
Russia’s export quotas took effect on February 15, while bad weather at ports continues to hold back shipments. “Exporters’ demand has softened, and while lower taxes and higher FOB improved margins slightly, many exporters remain in the red. Some have reportedly transferred parts of their quotas to other traders,” Sovecon said in a weekly note.
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