Russian wheat up for 13th week on limited supply and stronger rouble

Russian wheat export prices rose for a 13th consecutive week, supported by limited supply, a stronger rouble and a higher global benchmark in Paris BL2Z1, analysts said on Monday.

Russian wheat with 12.5% protein loading from Black Sea ports for supply in the second half of October was $310 a tonne, free on board (FOB) at the end of last week, up $3 from the previous week, said Dmitry Rylko, head of consultancy IKAR. 0#IKAR

Sovecon, another consultancy, pegged wheat as having risen $6 to $312 a tonne and barley up $7 to $269 a tonne.

Russian wheat exports are down 27% since the start of the season on July 1 owing to a smaller crop and higher export tax.

The tax, which Moscow has set on a weekly basis since June, will rise to $58.70 a tonne for Oct. 13-19, up from the current $57.80. The price index on which it is based remains lower than the actual FOB price.

“We expect the global wheat market to be relatively flat or move higher,” Sovecon said.

However, sowing is significantly behind the pace of last year.

Other Russian data provided by Sovecon and IKAR:

Product:

Price at the end of last week:

Change from week earlier

– Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon)

15,025 rbls/t ($209.58)

+25 rbls

– Sunflower seeds (Sovecon)

37,450 rbls/t

+425 rbls

– Domestic sunflower oil (Sovecon)

85,325 rbls/t

+1,650 rbls

– export sunflower oil (Sovecon)

$1,375/t

+$55

– export sunflower oil (IKAR)

$1,355/t

+$55

– soybeans (Sovecon)

50,800 rbls/t

+200 rbls

– white sugar, Russia’s south (IKAR)

$623.9/t

+$1.8

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Tags: Russia, wheat, limited supply