Source: Oleoscope (Russia)
As Rusagrotrans told Interfax, the price fell by 2 US dollars to 217 US dollars per ton (FOB) last week. The price for French wheat fell to 233 US dollars (-4 US dollars), for Romanian wheat to 220 US dollars (-4 US dollars) and for US wheat to 213 US dollars (-15 US dollars) per ton.
According to experts, the pressure on the market was triggered by the USDA report, in which global ending stocks were increased beyond expectations, as well as by the continuing improvement in the outlook for the US harvest.
At the same time, the condition of soft wheat crops in France has continued to deteriorate. The proportion of crops in good to excellent condition fell from 57% to 52% by July 15. This is the worst figure since the unusually poor 2019, when the proportion of crops in good to excellent condition was 42%, according to the experts. Only 14 % of the area has been harvested, compared to the annual average of 43 %. Strategie Grains estimates the soft wheat harvest in France at 28.7 million tons compared to 35.1 million tons last year.
According to experts, the Egyptian and Algerian tenders, in which around 1.5 million tons of wheat were purchased, contributed positively to prices, with Russian wheat accounting for a significant proportion of purchases.
According to Rusagrotrans, wheat prices (class 4, 12.5% protein) in the deep-water ports fell by 50 rubles compared to the previous week to 15,300-15,500 rubles per ton (excluding VAT). Prices in the small water ports rose by 700 roubles to 14,500 roubles. Last year, deep water prices were at Rs 16,500 per tonne, while small water prices were at Rs 14,500.
The domestic wheat market was down in the central district and remained close to the previous week’s levels in the other regions.
In the south, prices were set at around 13,200-13,500 rubles per ton (excluding VAT):