The Russian wheat market continued experiencing an upturn in prices last week, reports UkrAgroConsult. Export prices for Russian milling wheat closed the week up another $2-3/MT FOB in the deep-water ports and on average up $10/MT FOB in smaller ports. That substantial price rise in smaller ports results from still lower grain supply on СРТ-Azov bases compared with the deep-water ports, along with some growth in demand from Turkey.
Russian wheat prices have reached a four-year high. They are driven up mostly by domestic factors. Tight grain supply in southern Russia, reluctance of growers to sell grain at current prices, which rise in the domestic market with each passing day, are pushing up seller prices on a FOB basis as well.
Although Russian wheat becomes less competitive in the export market due to its rising price, traders are forced to raise it because they already have to pay more to get additional grain volumes in the domestic market.
More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior, crop conditions and progress in harvesting/planting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Grain" by UkrAgroConsult.
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