Andrey Sizov
21.11.2024
As of November 13, prices for Russian class 4 wheat (with 12.5% protein) decreased by 100 rubles to 14,850 rub/mt ($151/mt), marking the first decline since mid-October, SovEcon said in a report. Average prices for Russian wheat dropped amid a decrease in quotes in the southern regions.
The most significant price reduction was observed in the South of Russia. Last week, quotes for Russian wheat in the region decreased by 400 rubles to 15,650 rub/mt ($158/mt), marking the lowest level since the end of September.
The primary factor for the price drop in the South, a key export region, could be a weakening in demand from exporters amid relatively low export activity. SovEcon estimates Russian wheat exports in November at 4.0 million metric tons (mmt), down from 5.5 mmt the previous month.
In the Center, wheat prices as of October 13 increased by 350 rubles to 14,200 rub/mt ($145/mt). Prices were supported by strong demand from domestic buyers, primarily livestock farms.
Average export prices for Russian wheat last week fell by $3.5 to $228-230/mt FOB.
Sluggish export activity in the short term is likely to continue exerting additional pressure on ruble prices.
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