Despite the ups and downs on wheat exports, Russian shipments kept a steady pace until the end of 2018 because of the absence of export restrictions from the country’s authorities. In other words, Russian wheat exports experienced an unprecedented increase to 1.2 million tonnes the last week of December. Yet, the trade is expected to be lowered the holiday season, between Dec 30 to January 8, as stated by Reuters.
Specifically, from December 27 Russia has transported approximately 28.2 million tonnes of grain since the start of the 1018/19 season, according to Institute of Agricultural Market Studies (IKAR). This was more by 5% from last year and included 23.8 million tonnes of wheat.
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Moreover, SovEcon noted that the pace of exports accelerated during the end of December, adding that the total wheat exports increased by 500,000 tonnes to 3.4 million tonnes.
Black Sea prices for Russian wheat with 12.5 % protein content and for delivery in January were $236 a tonne free on board (FOB) at the end of last week, down $2 from a week earlier, SovEcon addressed.
In the domestic market, wheat prices have been rising in recent weeks due to a weaker rouble currency and reduced supply.
In other words, domestic prices for third-class wheat were up 325 roubles at 11,450 roubles ($164) a tonne at the end of last week in the European part of Russia on an ex-works basis. Ex-works supply does not include delivery costs.
Sunflower seed prices were steady at 18,450 roubles a tonne following a high crop of 12.6 million tonnes, up from 10.5 million tonnes in 2017. Domestic sunflower oil prices rose by 175 roubles to 42,675 roubles a tonne, while export oil prices were down $5 to $625 per tonne.
