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Russian wheat export prices rose last week as the rouble strengthened, making grain less competitive on dollar-denominated global markets, analysts said on Monday. Black Sea prices for Russian wheat with 12.5 percent protein content were at $182 a tonne on a free-on-board (FOB) basis at the end of last week, up $2 from a week earlier, Russian agricultural consultancy IKAR said in a note.
SovEcon, another Moscow-based consultancy, quoted FOB wheat prices in the Black Sea area as unchanged from a week earlier at $181.5 per tonne. The rouble fell to an all-time low of 86 against the US dollar earlier in January but strengthened slightly last week, gaining around 3 percent due to an uptick in oil prices. Black Sea corn (maize) prices were at $163 a tonne, up slightly from $161 per tonne at the end of the previous week, IKAR added.
Russia exported 21.9 million tonnes of grains, including 16.5 million tonnes of wheat, between July 1 and January 27, the agriculture ministry said. The pace of grain exports was down 3.7 percent year-on-year. Domestic prices for third-class wheat added 50 roubles compared with the end of the week earlier to 11,325 roubles ($148.92) a tonne in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.
SovEcon also said average prices for sunflower seeds were up 450 roubles at 26,250 roubles a tonne. Domestic sunflower oil prices increased 575 roubles to 58,425 roubles a tonne while FOB Black Sea export prices were up $5 at $770 a tonne. IKAR's white sugar price index for southern Russia was at $601.01 a tonne at the end of last week, up $38.74 from a week earlier.

Copyright Reuters, 2016

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