Russian wheat export prices up on higher benchmarks

Russian wheat export prices rose last week following higher global benchmarks and thanks to lower stocks in Russia's export-focused southern regions, analysts said on Tuesday. Black Sea prices for Russian wheat with 12.5 percent protein content were at $190 a tonne on a free-on-board (FOB) basis at the end of last week, up $5 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 at $189 per tonne, up $3. Chicago wheat prices rose 2.7 percent last week. Russia exported 29.95 million tonnes of grain, including 21.8 million tonnes of wheat, between July 1 and April 20, the agriculture ministry said. The pace of grain exports was up 9.5 percent year on year.
Prices on the domestic market were supported by continuing active demand from exporters and declining stocks in export-focused southern regions ahead of the new crop, which is due to arrive in June or July. Favourable weather sped up spring grain sowings, SovEcon added. Farmers sowed spring grains on 16.5 percent of the planned area - 5.1 million hectares by April 25, up from 3.1 million hectares on the same date a year ago.
Spring wheat was sown on 4.7 percent of the planned area, 623,200 hectares, up from 259,200 hectares, the agriculture ministry added. Last week the ministry lowered its estimate for winter grains in poor condition to 800,000 hectares from a previously expected 1.4 million hectares. Last autumn farmers sowed winter grains of the 2016 crop on 16.4 million hectares.
Domestic prices for third-class wheat added 25 roubles compared with the end of the previous week to 10,700 roubles ($161) 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 down 250 roubles to 23,475 roubles a tonne. Domestic sunflower oil prices fell 150 roubles to 53,175 roubles a tonne, while FOB Black Sea export prices were flat at $785 a tonne.