Sales of russian wheat fell amid government recommendations not to enter into contracts at current market prices

The volume of signed contracts for the sale of russian wheat fell to 1.6 million tons by October 25. This is the lowest value since the beginning of June, according to experts at the Sovecon Center.

Sales continue to decline amid government recommendations not to enter into contracts at current market prices, analysts explain.

“Market participants attribute the decline in sales to the recommendations of the russian ministry of agriculture not to sell wheat at the current market price,” the report says. – Earlier, the media reported the minimum price recommended by the russian ministry of agriculture at $260-270/t. In recent weeks, the recommended price may have decreased slightly, but it still remains higher than the market.”

The center notes that amid declining sales, wheat prices have also declined. By the end of last week, the price of russian wheat with 12.5% protein decreased by $7 to $232/t FOB, according to the price monitoring of Sovecon.

Experts estimate wheat exports in October at 4.2 million tons, down from 4.5 million tons a year earlier.

“Declining sales and sluggish demand from exporters will continue to put pressure on domestic prices in the short term,” analysts say.

Tags: Russia, export, prices