Russian wheat export prices ended higher for the third week in a row, supported by a strengthening of the rouble against the dollar thanks to high oil prices, analysts said on Monday. Strong local currency along with tougher quality controls at ports following complaints from major buyers have been slowing down Russian grain exports.
Black Sea prices for Russian wheat with 12.5 percent protein content were at $224 a tonne free on board (FOB) at the end of last week, up $4 on the week, IKAR agriculture consultancy said in a note. SovEcon, another Moscow-based consultancy, quoted FOB wheat up $4 at $226 a tonne and barley - up $2 at $232 a tonne. Prices for maize (corn) are being set at around $188-189 per tonne as the first price indicator for the new crop, it said.
Russian grain exports are up 21 percent so far this marketing year, which started on July 1, compared with 40 percent in early September. By Sept. 27 Russia had exported 14.3 million tonnes of grain, including 12.1 million tonnes of wheat.
Domestic prices for third-class wheat were down 75 roubles at 10,975 roubles ($167) a tonne at the end of last week in the European part of Russia on an ex-works basis, SovEcon said. Ex-works supply does not include delivery costs. Domestic prices fell partially due to rains which have improved prospects for this and next year's crop. Farmers have sown winter grains for next year's crop on 76.1 percent of the planned area, or on 13.1 million hectares.