Demand and new sales of Russian wheat fade on supply concerns




Export demand for the Russian wheat and new sales faded at the end of last week due to supply risks in the Black Sea, after Russia invaded Ukraine on February 24, Reuters said.

"There are almost no sales", – IKAR agriculture consultancy said, adding that it estimates the current "virtual" price for Russian wheat with 12.5% protein content from the Black Sea ports at 340USD/t FOB.

Sovecon, another consultancy, said demand for Russian wheat fully stopped on February 24. Before that, the price was at 314 USD/t, it said. Russian Black Sea terminals continue to load and ship grain, there is till a big question mark over new shipments due to a lack of freight offers, Sovecon added.

Russia, according to Sovecon, has around 7-7.5 mln tonnes of wheat to export by the end of June and 1-2 mln tonnes of corn.

"Previously-signed contracts are being fulfilled (from the Black Sea)", – said a Russian trader, adding that the Azov Sea ports remain closed.