Russian export prices for benchmark wheat eased slightly last week after Egypt bought US origin in a tender as well as on rising competition from neighbouring Kazakhstan, analysts said on Monday. Russian wheat with 12.5 percent protein content slightly weakened to $281 per tonne from $283 per tonne on a free-on-board basis (FOB) in the port of Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said.
SovEcon analysts wrote in a weekly market roundup that fourth-grade wheat purchasing prices in Russian deep-water ports declined to 8,000-8,200 roubles ($270-$280) per tonne last week from 8,200-8,400 roubles ($280-$290) per tonne on a carriage paid to (CPT) basis.
"Russian wheat prices in ports will need to decline by at least 400-600 roubles per tonne to restore its competitive advantage over US wheat if the rouble remains around current levels against the dollar," SovEcon said. Egypt, the world's largest wheat importer, has bought 60,000 tonnes of US soft red winter wheat for April 21-30 shipment on a free on board basis, the main government wheat buyer said last week.
Iran's state grains agency the Government Trading Corporation of Iran (GTC) has bought at least 300,000 tonnes of wheat last week largely from Russia and Kazakhstan. As of the beginning of March, Russia had exported a record 21.5 million tonnes of grains, including legumes, of which wheat accounted for 17.2 million tonnes, IKAR said.
US CBOT May wheat slipped 0.23 percent to $6.41-3/4 per bushel on Monday, pressured by favourable weather for hard red winter wheat across areas of the US Plains. The most active May contract in western Europe was at 208.75 euros a tonne.
Russian average domestic prices for third-grade milling wheat added 25 roubles and reached 6,750 roubles ($230) per tonne ex-works in European Russia. Fourth-grade prices were flat at 6,700 roubles ($230) per tonne ex-works last week, SovEcon said.