Andrey Sizov
31.07.2024
By the end of last week, prices for Russian 12.5% wheat in deep-sea ports rose by 1,000 rub compared to the previous week, reaching 15,500-16,000 rub/MT. The prices saw the largest increase since late May amid rising demand from exporters.
In the South, class 4 wheat prices climbed by 650 rub to 14,550 rub/MT, while in the Central region, they remained unchanged at 11,600 rub/MT.
Exporter demand for wheat in the South has increased in recent weeks amid active sales. As of July 30, the volume of concluded sales contracts amounted to 3.2 million metric tons (MMT), up from 2.6 MMT a month earlier.
In July, Russia also actively sold wheat at tenders. During the July tender, Egypt’s GASC purchased 720,000 MT of Russian wheat. Algeria’s OAIC agency acquired 600,000 to 800,000 MT of wheat, some of which will be supplied from Russia.
SovEcon estimates wheat exports in July at 3.2 MMT, down from 4.5 MMT a year earlier and a five-year average of 3.0 MMT.
A surge in export demand may support further price increases in the South. However, this growth could be short-lived, considering the more challenging financial situation of agricultural producers, which compels them to actively sell the new crop.
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