Volga Baikal AGRO NEWS Update on the Wheat Prices !!!

Wheat continues to fall in price

Volga Baikal AGRO NEWS Update on the Wheat Prices !!!

Wheat continues to fall in price.

Export prices for Russian wheat of the new crop last week fell on the background of improving forecasts of gross harvest, including in the Black Sea region, according to Reuters. Eduard Zernin, Chairman of the Board of the Union of Grain Exporters, told Agroinvestor. That the demand prices for wheat with 12.5% ​​protein are $ 245 / t, which is $ 5 / t lower than the Russian offer at the last GASC tender. “Freight is expensive now, and it seriously affects the final price. Our offers are irrelevant, as no one is ready to take on them, ”he said. Head of the analytical center Rusagrotrans Igor Pavensky clarified Agroinvestor. That the bid price for wheat for August delivery at the end of last week was $ 248 / t FOB, down $ 7.

According to the analytical center SovEcon, in the domestic market the price of wheat of the 3rd class fell by 250 rubles, up to 13.7 thousand rubles / ton, 4th class – by 175 rubles, up to 13.6 thousand rubles / ton, 5th class – by 200 rubles, up to 13.1 thousand rubles / ton with self-delivery for the European part of Russia. Zernin noted that domestic prices are declining due to lack of sales. According to him, the cost of wheat with 12.5% ​​protein in deep-water ports is 14.04 thousand rubles / ton, in shallow water – 13.98 thousand rubles / ton. Pavensky said that the purchase prices of Russian wheat of the old crop on the basis of CPT Novorossiysk decreased by 700-800 rubles / ton to 14.3-14.5 rubles / ton without VAT, the cost of agricultural crops for the new crop is about 14 thousand rubles / tons without VAT.

SovEkon noted that the supply of wheat from producers is growing against the backdrop of the approaching new harvest, the harvest of which will start in the South in the coming weeks, while the stocks of wheat in agricultural enterprises are quite high. As of June 1, according to Rosstat, they amounted to 4.8 million tons (+ 74% yoy), which is a record figure for the last ten years. “The demand for processors and exporters is relatively low. Domestic consumers are still expecting lower prices. Traders are cautious against the backdrop of a decline in export quotations and an increase in floating duties, ”the center said in its review. Short-term analysts of SovEkon expect further price reductions, but the downside potential in the South already looks limited. According to experts’ forecast, prices in deep-water ports may still drop by 500-700 rubles per ton.

From the beginning of the 2020/21 season to June 17, grain exports from Russia amounted to 41.7 million tons, which is 17% more than in the same period last season. Of these, 33.6 million tons fell on wheat, which is 11% more than last year, the export of barley amounted to 4.98 million tons (+ 78%), corn – 3.06 million tons (+ 25%), said SovEkon with reference to the data of the FCS. Center analysts predict that in June grain exports will amount to 2.7 million tons, including 2.4 million tons of wheat. The increase in the export of wheat this month is facilitated by the duty, which from June 23 will be $ 38.1 per ton.

According to the Ministry of Agriculture, as of June 21, spring crops are sown across the country on 29.6 million hectares, or 101.2% of the forecasted area, of which spring wheat – on 13.1 million hectares, or 103.3%. Meanwhile, in Crimea, after Dagestan, the harvesting campaign of winter crops began, the press service of the regional Ministry of Agriculture said. The total sowing of grain in the republic this year is about 600 thousand hectares, of which 510 thousand hectares under winter crops. According to the head of the regional agricultural department, Andrei Ryumshin, this year the return frosts in May have created a difficult situation: 77% of grain crops are in satisfactory condition. Under optimal climatic conditions, Crimea plans to harvest grain, legumes and forage crops within a month.

Source: Agroinvestor.ru

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