Wheat prices from Russia have reached a 7-year high

Prices for Russian wheat (protein 12,5%) last week renewed a seven-year high and reached $303 per ton (FOB), according to SovEcon monitoring. He writes about it interfax.ru.

During the week, the growth was $2. Prices are supported by fears of a low harvest in Russia and poorly predictable export duties, according to experts.

In recent months, prospects for a new wheat harvest in Russia have significantly worsened against the background of a reduction in sown areas and hot and dry weather in the summer, it is recalled in the message. Many experts significantly lowered the estimates of the new crop. The latest public estimate of "SovEcon" is 75,4 million tons of wheat, the maximum estimate a few months earlier was 84,6 million tons.

According to experts, against the backdrop of high prices, Russia continues to lose competitiveness in the foreign market. At the last tender, the Egyptian state company GASC purchased 240 tons of Ukrainian wheat and only 60 thousand tons of Russian

The domestic ruble market remains under pressure. Prices in ports for wheat of the 4th class (protein 12,5%) decreased by 1%, to 16-100 rubles per ton, the average price for the European part of the country — by 16%, to 500 rubles. The market expects an increase in the export duty, the supply of the new harvest remains relatively high.

"In the short term, experts expect to see somewhat lower/stable ruble prices for wheat. The potential for price reduction looks limited," the message says.
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