Source: Zerno.ru (Russia)
According to the analytical center of Rusagrotrans, which is part of Demetra-Holding, the increase in prices for Russian wheat that commenced in late January has persisted. Consequently, the export prices for Russian wheat with a protein content of 12.5% have risen to $252 per ton FOB for delivery in February-March, reflecting an increase of $7 per ton over the past week and $16 per ton over the month. These prices are nearing the levels observed in late May 2024, when global markets reacted to possible crop losses owing to returning frosts in Russia.
Meanwhile, prices for Romanian wheat climbed to $250 per ton (+$2 per ton), U.S. wheat reached $252 per ton (+$6 per ton), and Argentine wheat was priced at $239 per ton (+$1 per ton). French wheat, however, experienced a decline to $244 per ton (-$2 per ton).
In recent purchases, Saudi Arabia (GFSA) acquired 920,000 tons of wheat for delivery between May 1 and July 15, which included Russian wheat, at an average transaction price of around $250 per ton. Bangladesh also secured 50,000 tons of wheat from the Black Sea region at an average price of approximately $252 FOB.
Following a rapid rise at the end of last week and the start of this week, the exchange wheat market saw a downturn. While severe frosts in the U.S. and Russia provided momentary support for exchanges, the extensive snow cover across many frost-sensitive areas mitigated concerns about major crop failures. Nonetheless, the frosts over the past week and the current week may have adversely affected above-ground plant parts in regions such as Rostov, Volgograd, and Saratov, which have limited to no snow cover.
In deep-water ports, the prices for grade 4 wheat with a protein level of 12.5% began to increase once again, reaching 18,000-18,200 rubles per ton ex VAT (+450 rubles per ton compared to the previous week), amid a decrease in offers from farmers. Furthermore, CPT Novorossiysk prices for rail delivery were recorded at 18,900-19,400 rubles per ton (+650 rubles per ton).