Russian wheat export prices fell last week due to a sharp drop in wheat prices in Chicago Wv1 and Paris BL2Z1 as well as the arrival of the new crop in Russia, analysts said.
New-crop Russian wheat with 12.5% protein loading from Black Sea ports and for supply in August was $238 a tonne free on board (FOB) at the end of last week, down $4 from the previous week, the IKAR agriculture consultancy said in a note. 0#IKAR
Another consultancy, Sovecon, recorded a decline of $12 to $234 a tonne of wheat. Barley was down $20 to $212, it said.
Russia is expected to export between 1.5 million tonnes and 2 million tonnes of wheat in July, down from 2.3 million tonnes in July 2020, due to its export tax and slower start of harvesting, Sovecon said, citing its preliminary estimate.
Russia’s southern regions are expected to produce almost record-high wheat crop this year. But some of them, such as the Krasnodar region, need dry weather in coming weeks as rains complicated harvesting last week, Sovecon said.
Russia’s wheat yields are so far lower than a year ago as the harvesting is yet to enter the most active stage and starts later than in 2020, it added.
Source: Reuters (Reporting by Polina Devitt; Editing by Edmund Blair)