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321025

Russian wheat rises for sixth week in a row amid strong demand

MOSCOW, Nov 29 (Reuters) - Russian wheat prices gained last week for the sixth consecutive week amid strong export demand and an earlier rally in global benchmarks, analysts said on Monday. Russian wheat with 12.5% protein loading from Black Sea ports for supply in the first half of December was $340 a tonne free on board (FOB) at the end of last week, up $6 from the previous week, the IKAR consultancy said. Sovecon, another consultancy, pegged wheat up $6 to $343 a tonne, while barley rose by $1 to $305 a tonne. Traders are focused on spot sales as rising state tax complicates forward contracts, IKAR said. Russian wheat exports are down by 35% since the start of the 2021/22 marketing season on July 1, due to a smaller crop and the export tax, which will rise to $80.8 per tonne this week. The tax is based on an indicative price of $315.5 per tonne. "Russia is slightly changing its export tax calculation approach," Sovecon said, adding that the updated system could narrow the lag between the actual market price and the indicative price index. "The contracts will be excluded from the price index calculation after their execution now. Earlier, they remained in the index calculation basis until the end of the shipment period set by an exporter while registering the contract," Sovecon said. Other Russian data provided by Sovecon and IKAR: Product: Price at the end Change from week of last week: earlier - Domestic 3rd class 15,300 roubles/t +75 rbls wheat, European part ($204.51) of Russia, excludes delivery (Sovecon) - Sunflower seeds 35,650 rbls/t unchanged (Sovecon) - Domestic sunflower 88,000 rbls/t +325 rbls oil (Sovecon) - export sunflower $1,410/t +$10 oil (Sovecon) - export sunflower $1,400/t unchanged oil (IKAR) - soybeans (Sovecon) 49,000 rbls/t -575 - white sugar, $643.4/t +$9.8 Russia's south (IKAR) ($1 = 74.8133 roubles) (Reporting by Olga Popova and Polina Devitt; editing by Ed Osmond)

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