Russia. Substantial price growth continued on the grain market last week

Last week substantial price growth continued in the Russian wheat market, fueled by both global and Black Sea market trends, reports UkrAgroConsult.

Export prices for Russian high-protein wheat (12.5% and higher) closed the week on average up another $10-11/MT at $231-235/MT FOB in Novorossiysk port and $200-204/MT FOB in small ports for August-September delivery.

Prices for 11.5% protein milling wheat and feed wheat gained some $6-8/MT over the week for August-September delivery.

The gap in Russian wheat price against last year has reached $37/MT FOB. The current price level of Russian high-protein wheat is the highest since February 2015.

As before, export prices for Russia wheat are supported by expectations of a wheat crop decrease in the country – this particularly concerns milling wheat. Rains over the country still more deteriorate the quality of wheat in Russia. Grain germination is reported, as well as an expanding share of feed wheat.

Another bullish factor for wheat prices is record strong demand for this commodity in the first months of the season. The top importers of Russian wheat at the time were Turkey and Egypt. However, noteworthy is a substantial increase in deliveries to other African countries and the European Union. Vietnam also continues to import Russian wheat actively, UkrAgroConsult’s analysts note.