Export prices for Russian wheat fell to their lowest level since 2020




Last week, prices for Russian wheat with a protein of 12.5% dropped to 218-224 USD/t FOB, which is the lowest level since September 2020. This is stated in the weekly price monitoring of the SovEkon company.

As specified, export prices for Russian grain are declining due to unfavorable conditions on the global market and weakening government control over prices.

“The decline in Russian export prices was preceded by a downward trend in global wheat prices. Owing to low demand, French wheat with a protein of 11% fell in price to 224 USD/t FOB by mid-February, which is 21 USD/t lower than at the beginning of the year. An additional factor in the decline in prices for Russian wheat could be a revision of the minimum price recommended by the Ministry of Agriculture of the Russian Federation,” analysts note.

During the latest Egyptian GASC tender, all Russian bids were submitted at 245 USD/t/t FOB (with payment for 180 days), which suggests a new unofficial price of 235 USD/t, the review says.

It is also reported that due to falling prices, sales of Russian wheat have increased significantly. Thus, the volume of concluded contracts for the sale of wheat as of February 19 increased to 2.8 mln tonnes from 1.9 mln tonnes a month earlier.

“The weakening of export prices reduces the likelihood of strengthening wheat prices on the domestic market,” experts added.