Source: APKinform (Ukraine)
The high supply of wheat at the beginning of the new season led to a slump in grain prices on the Russian market, but recently this trend has been replaced by growth, according to the SovEcon company.
As the analysts noted, from the beginning of June to mid-July, prices for wheat in Russian deep-sea ports fell by 3350 rubles – up to 14750 rubles per ton.
At the same time, the Russian wheat market has recovered in recent weeks against the backdrop of the reduction in supply in the south. Quotations in the ports rose by RUB 1,000 to RUB 1,750 per tonne by the beginning of August.
“So far, we are not sure whether the rise in quotations is sustainable, as the wheat supply will remain at a historically high level, which will be favored by the difficult financial situation of agricultural producers and prohibitive lending rates,” the experts said.