Russia revived exports of wheat from the Black Sea last week after sales from government grain stocks led to a price slide of about 18 percent since February, analysts said on Monday. Russia, historically the world's number three wheat exporter, was hit by a drought last year, which slashed its grain crop by a quarter and quickly depleted the exportable surplus. Its inventories remain low.
But the recent price fall will allow the country to export a few hundred thousand tonnes of grain in the period from April to the end of the marketing year on June 30, the SovEcon think-tank said. Russia officially forecasts grain exports of 14.8 million tonnes in 2012/13, of which 14.6 million tonnes has already been shipped between July 1 and end-March.
Russia has sold about 2.88 million tonnes of grain from its stocks since the start of the 2012/13 season on July 1. It still has grain stocks of about 1.9 million tonnes. The price of wheat with 12.5 percent protein content was quoted at $310-315 per tonne on a free-on-board (FOB) basis in deep-water ports of the Black Sea last week, according to IKAR.
SovEcon quoted prices for third-class milling wheat at 9,800 roubles ($310) per tonne on a carriage-paid-to (CPT) basis in Novorossiisk. Maize (corn) prices rose $4 to $264 per tonne FOB basis in the Azov Sea, IKAR said. Chicago Board of Trade May wheat fell 0.8 percent to $7.03-1/4 a bushel by 1053 GMT, while front-month May milling wheat on the Paris futures market was up 0.20 percent at 245 euros ($320).
In European Russia, the average domestic EXW (ex-silo) price for milling wheat declined by 250 roubles to 9,575 roubles per tonne last week, SovEcon added in a note. Feed wheat lost 300 roubles and was seen at 9,250 roubles per tonne. Feed barley prices fell by 75 roubles to 8,275 roubles per tonne, while maize prices were down 25 roubles at 8,450 roubles per tonne, according to SovEcon. Milling rye was quoted at 7,350 roubles per tonne, down 150 roubles.