 Home > Food News > Food Articles > Russian wheat spotlight: Exports slowed and Russian wheat prices continued to fall

Russian wheat spotlight: Exports slowed and Russian wheat prices continued to fall

 Last Update: 2022-09-06
 Source: Internet
 Author: User

Tags

tdp 1.5

strongest wood world

Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

Wheat export prices

Moscow-based consultancy IKAR said that as of last Friday (August 26), the FOB price of Russia's 12.
5 percent protein at the Black Sea port was $315 a tonne, down $10 or 3.
1 percent
from a week ago.

SoveEcon, another Moscow-based consultancy, said Russian wheat on demand was quoted at $312 to $318 a tonne, down from $334 to $
337 a tonne a week ago.

Port data cited by SovEcon showed Russia exported 660,000 tonnes of grain last week, compared to 850,000 tonnes
the week before.
The agency expects the pace of wheat exports to accelerate in the coming weeks
.

Domestic wheat prices in Russia also continued to fall as supply grew
.
Domestically produced third-class wheat was quoted at 11,925 rubles per tonne, down 450 rubles
from a week ago.

Russian farmers have harvested 78.
9 million tonnes of wheat

Data released by the Russian government shows that as of August 25, Russia's total cereal harvest production was 105.
2 million tons, compared with 92.
5 million tons a week ago, compared with 86.
4 million tons
in the same period last year.

To date, Russia has harvested 78.
9 million tonnes of wheat, up from 72 million tonnes a week ago and 63.
2 million tonnes
in the same period last year.
Russian farmers start harvesting winter wheat
in July.

Russian wheat yields increased this year to 4.
22 tonnes per hectare, up from 3.
09 tonnes/ha
in the same period last year.

On August 16, SovEcon forecasts Russia's wheat production in 2022 at a record 94.
7 million tonnes, up from an earlier estimate of 90.
9 million tonnes
.
The USDA raised its 2022/23 wheat production forecast for Russia by 6.
5 million tonnes on Aug.
12, up from an earlier forecast of 81.
5 million tonnes to 88 million tonnes, an increase of 17.
1 percent from 75.
16 million tonnes
.
Russian wheat exports in 2022/23 are expected to reach a record 42 million tonnes, up 2 million tonnes
from earlier expectations.
On August 8, IKAR expects Russian wheat production to be a record 95 million tonnes in 2022, up from an earlier forecast of 92 million tonnes
.

Last week's weather in Russia was mostly dry, and this week the weather is expected to remain dry, with temperatures higher than normal
.
Russian farmers have sown 928,000 hectares of winter 2023 cereals, up from 172,000 hectares a week ago and slightly lower than the 1 million hectares
sown in the same period in 2021.

Tariffs were lowered

For the period from August 31 to September 6, 2022, the benchmark price of Russian wheat and mixed wheat was $348.
0 per tonne, and the export tariff was 4,053.
7 rubles per tonne (about $66.
6).

This compares to the benchmark price of $358.
1 per tonne for the period from August 24 to August 30, and export tariffs of 4,794.
7 rubles (about $80.
45)
per tonne.

For comparison, before the first ruble-denominated export tax was implemented in July, the wheat export tax from June 29 to July 5 was $146.
10/ton
.

Wheat sellers in Russia usually price their exports in US dollars and buy wheat
in rubles on the domestic market.
The recent sharp fluctuations in the ruble exchange rate and reduced convertibility have made the calculation of export tariffs more complicated
.

From July, the Russian Ministry of Agriculture used rubles to price wheat export tariffs and set the wheat base price for which tariffs are calculated at 15,000 rubles instead of the previous $
200 per ton.
The export base price of barley and maize was also changed from $185/ton to 13,875 rubles
.

The ruble fell 1.
6% in the past week

At 1317 GMT on Monday, the Russian ruble was trading at 60.
19 to $1, down 1.
6 percent
from a week ago.

For most of August, the ruble exchange rate hovered around 60 rubles as volatility weakened
.

On February 23 (before the outbreak of the Russian-Ukrainian conflict), the ruble approached 80 against the dollar, then fell to an all-time low of $121.
53 against the dollar in early March, before soaring all the way to a new seven-year high
of $50.
01 against $1 in June.
The strong exchange rate of the ruble has raised concerns among Russian policymakers and exporters, as a strong ruble could weaken exporters' sales revenues
.
Last month,Russia's central bank decided to cut the key interest rate to 8 percent and hinted at the possibility of further rate cuts, helping the ruble fall back, but the ruble remains the world's strongest performing currency
so far this year.

This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.