Volga Baikal AGRO NEWS Update on the Russian Grain Price Development !!!
Purchase prices for Russian wheat in deep-water ports are updating records.
For some of the largest exporters, the figure reached 18.3 – 18.6 thousand rubles per ton due to the devaluation of the ruble and a sharp rise in the price of wheat on the world market, where prices exceeded $ 400 per ton. Rising prices can lead to new export restrictions, market participants fear.
Large wheat exporters are raising purchase prices in deep-water ports. Since March 14, Demeter Trading has been buying wheat at the Novorossiysk Grain Terminal and the Novorossiysk Bakery Plant at 18.3 thousand rubles per ton, Rif Trading House at the KSK terminal at 18.6 thousand rubles per ton without VAT.
According to Sovecon, average purchase prices for wheat with 12.5% protein increased from 17.25 thousand rubles to 18.75 thousand rubles per ton without VAT during the week, which became an absolute record. Andrey Sizov, Director of Sovecon, connects the dynamics with the devaluation of the ruble and the rapid rise in the price of wheat on the world market after the start of the Russian military operation in Ukraine. According to the International Grain Council (IGC), at the beginning of March, the cost of Russian wheat with 12.5% protein on the FOB Novorossiysk basis reached $405 per ton – $80 higher than a week earlier.
As Mr. Sizov notes, last week wheat shipments from Russia resumed after a short pause, and exporters started purchasing again. Sovecon on Friday raised the estimate of wheat exports from Russia in March from 1.2 million tons to 1.6 million tons and may still raise the forecast, he points out. According to customs data, from the beginning of the season to March 10, Russia exported 28.1 million tons of grain, including 23 million tons of wheat – about 30% less than last season.
The purchasing price index of the Union of Grain Exporters in deep-water ports on March 14 was at the level of 16.72 thousand rubles per ton, at low water – 15.9 thousand rubles per ton. The chairman of the Board of the union, Eduard Zernin, says that there is a “slight correction” due to the growth of exchange rates. Dmitry Rylko, Director General of the Institute of Agricultural Market Conjuncture, notes that prices in the south and in the center of Russia also increased last week following rates in ports. According to the Ministry of Agriculture, wheat in the south on March 11 cost an average of 14.72 thousand rubles per ton, in the center – 14.54 thousand rubles per ton.
According to Andrey Sizov, Russia still has 7-8 million tons of grain to export before the end of the season, including 5-6 million tons of wheat.