Russian wheat export prices steady, stock sales support: SovEcon

May 14, 2013

Russia’s wheat export prices have been steady so far in May as expectations for the new crop to come to market soon and government sales from its stocks have offset demand from abroad, SovEcon agriculture analysts said. Russia, historically the world’s No 3 wheat exporter, was hit by a drought last year, which slashed its grain crop and quickly depleted its exportable surplus.

But its stocks, together with stocks of other Black Sea wheat producers, were enough to revive modest exports in April. Russia and Ukraine have already sold abroad 20 million tonnes of wheat this season and can export up to 1 million tonnes in May-June. “New cargoes are expected to come for Kenya and Spain in addition to a cargo, which is being loaded with wheat for Libya, in Novorossiisk now,” SovEcon said in its first market report after long national holidays. Export prices remained flat during the last two weeks, when exporters were buying milling wheat at 9,800 roubles ($310) per tonne for delivery to the Black Sea port of Novorossiisk, it added. SovEcon quoted prices for third-class wheat at 8,900-9,500 roubles ($280-$300) per tonne in shallow-water ports and for fourth-class wheat at 8,700-9,200 roubles per tonne. Reuters

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