Content ID

332566

Russian wheat down with global benchmarks, rising harvest pressure

* This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, Aug 22 (Reuters) - Russian wheat export prices fell last week following a decline of wheat in Chicago and rising pressure from new crops, analysts said on Monday, adding the pace of exports remained slow and farmers were concerned about storage capacity. Russian prices for wheat with 12.5% protein content and for supply from Black Sea ports fell by $25 to $325 a tonne free on board (FOB) at the end of last week, the IKAR agriculture consultancy said in a note. Russia exported 850,000 tonnes of grain last week, compared with 890,000 tonnes the previous week, fellow consultancy Sovecon said, citing port data. Prices in the domestic market fell as well as supply is rising rapidly, first of all of low protein 5th grade wheat, according to Sovecon. "Farmers are getting concerned about the storage availability: the crop is huge, sales are sluggish and the sunflower and corn harvest is approaching," Sovecon said, adding that it had observed such a situation for the first time since the 2017/18 season. There is a strong demand from the Russian farmers for grain storage bags and the equipment for them, it added. Russia remains mostly dry and temperatures are above normal, Sovecon said, adding that this could damage spring wheat and some late crops. "This also is becoming an issue for winter planting which is starting currently," it said, adding that farmers had already sown winter grains on 172,000 hectares compared to 288,000 hectares around the same date in 2021. Other Russian data provided by Sovecon and IKAR: Product: Price at the end Change from week of last week: earlier - Domestic 3rd class 12,375 rbls/t -450 rbls wheat, European part of Russia, excludes delivery (Sovecon) - Sunflower seeds 26,100 rbls/t +400 rbls (Sovecon) - Domestic sunflower 73,950 rbls/t +275 rbls oil (Sovecon) - Domestic soybeans 34,250 rbls/t unchanged (Sovecon) - Export sunflower $1,420/t -$10 oil (Sovecon) - Export sunflower $1,350/t -$10 oil (IKAR) - White sugar, $967.3/t -$80.2 Russia's south (IKAR) The harvesting data provided by Sovecon as of Aug 18*: All grains: Wheat Barley Crop, mln tonnes 92.5 72.0 13.6 Crop, as of same 81.0 60.3 14.2 date in 2021 Yield, 3.97 4.35 3.39 tonnes/hectare Yield, as of same 2.92 3.21 2.57 date in 2021 Harvested area, 23.3 16.6 4.0 mln hectares Harvested area, as 27.8 18.8 5.6 of same date in 2021 * Russia's agriculture ministry has yet to publish harvesting data in detail for the current season. (Reporting by Polina Devitt; editing by David Evans)

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