Source: Zol.ru (Russia)
Demand prices for Russian wheat (protein 12.5%) with delivery in August-September fell by $7 per week to $235 per ton (FOB), according to Interfax, citing the Rusagrotrans analytical center.
Prices for French wheat fell by $5 to $232, Romanian wheat by $1 to $242, Argentine wheat by $3 to $231, and Australian wheat by $1 to $254 per ton. The price of American wheat rose by $1 to $219 per ton.
“The decline in prices was due to the acceleration of new crop grain deliveries from Russia and Ukraine and the increased competitiveness of French wheat due to the weakening of the euro,” the center explained. At the same time, the wheat exchange market stopped falling amid news of possible purchases of American wheat by China. In addition, demand from a number of other importers, including Iran and Jordan, is expected to resume.
Key Tender Announcements and Import Forecasts
Among other factors affecting the price situation, experts cited Syria’s announcement on September 15 of a tender to purchase 200,000 tons of wheat. Egyptian state purchaser Mostakbal Misr announced the purchase of 200,000 tons of French wheat, as well as several batches of 30,000 tons of Ukrainian and Romanian wheat. Earlier, 400,000 tons of French wheat were purchased. The Iranian wheat producers’ syndicate forecasts wheat imports for the current season at 4.5 million tons due to a drop in harvest from 16 million tons to 11 million tons caused by drought, the center said.
Weekly Price Movements: Barley Rises as Wheat Weakens
The export price for Russian barley rose by $5 to $229 per ton (FOB) “due to the continuing rise in domestic prices caused by limited supply in the south and active demand on the world market from China,” the center noted.
The price in deep-water ports rose by 100 rubles to 16,000-16,400 rubles per ton (excluding VAT).
The price of wheat (4th class, 12.5% protein) in deep-water ports fell by 350 rubles to 16,500 rubles per ton (excluding VAT). In shallow waters, prices weakened by 150 rubles to 14,700 rubles per ton, with low purchasing activity.
In the south, wheat prices (4th grade, 12.5% protein, EXW elevator) fell to 14,000-14,400 rubles per tonne excluding VAT (-250 rubles), and in the Volga region to 12,000-13,300 rubles (-250 rubles). Prices in Central Russia remained largely unchanged in the range of 13,000-13,600 rubles per ton.
In Siberia, prices for 4th grade wheat remained at around 10,500-12,000 rubles per ton (excluding VAT). Rain continues to delay the start of harvesting and the arrival of the new crop on the market, the center noted.