Andrey Sizov
21.02.2024
Last week, prices for Russian 12.5% wheat dropped to $218-224 per metric ton (MT) FOB, SovEcon said in its price monitoring. This is the lowest level since September 2020. The prices declined amid challenging conditions in the global market and weakened government price regulation.
The decrease in Russian export prices followed a downward trend in global wheat prices. Amid low demand, French 11% wheat fell to $224/MT FOB by mid-February, showing a $21 decrease from the start of the year.
A factor contributing to the dip in Russian wheat prices might be the adjustment of the minimum recommended price by Russia’s Ministry of Agriculture (AgMin), as previously reported by Russian media. At the latest Egypt’s GASC tender, all Russian bids were placed at $245/MT FOB (180-day LC), suggesting a new unofficial price floor might be at $235/MT.
Amid the decline in Russian prices, sales of Russian wheat have notably increased. The amount of outstanding sales contracts for wheat as of February 19 rose to 2.8 MMT from 1.9 MMT a month earlier.
Russian wheat prices may continue to decline in the short term, following the global market trend.
