Export prices for Russian wheat were unchanged in thin trade last week as exporters were yet to renegotiate prices with farmers who were withholding the commodity, analysts said on Monday. Russian farmers, defaulting on forward sales in the hope of obtaining higher prices, have priced their wheat out of world markets, traders said last week.
Prices for Russian wheat with 12.5 percent protein content were flat at $282 a tonne in the Black Sea on a free-on-board (FOB) basis last week compared with a week earlier, the Institute for Agricultural Market Studies (IKAR) said. Prices were unchanged "although some bearish mood was felt after Russia lost the most recent GASC tender," Dmitry Rylko, the head of IKAR, added in a note. He did not provide details.
GASC is the main government wheat buying entity of Egypt, the world's largest wheat importer. Russia typically dominates sales to Egypt at this time of year, but in Egypt's latest tender the offer of Russian wheat was the most expensive. High wheat prices in Russia had been supported this season by a lack of high quality wheat, government plans to replenish state stocks after last year's drought, and delayed harvesting.
Russia, officially expected to export about 20 million tonnes of grains this 2013/14 marketing year, has already sold 12.2 million tonnes of grains, including 9.6 million tonnes of wheat, between the start of the season on July 1 and the end of October, IKAR said. In October the country exported 2.6 million tonnes of grains, including 1.8 million tonnes of wheat and excluding pulses.
Prices for sunflower seeds fell 75 roubles to 9,300 roubles ($280) per tonne last week, SovEcon said. IKAR saw its price index unchanged at 9,600 roubles. Export prices for sunflower oil fell $10 to $900-910 a tonne on a FOB basis in the Black Sea, SovEcon added, while IKAR quoted the export crude sunoil price flat at $863 a tonne. Sugar on the Krasnodar price index was down 100 roubles to 22,200 roubles per tonne, IKAR said.