Wheat prices in Russia have fallen to a record low since 2019, stated Sovecon analysts, TASS reports.
“In Russia, prices for 3d grade wheat fell to 11`550 RUR/t by March 29. The last time such a low price was recorded was on November 27, 2019," Sovecon said in a statement.
According to experts, prices fell amid the high supply of wheat and low demand from exporters. Sovecon noted that the supply of wheat remains at a high level for the second half of the season due to the record stocks for this time. According to Rosstat estimates, as of March 1, wheat stocks in agricultural organizations of the Russian Federation amounted to 17.4 mln tonnes, which is 82% higher than the average for five years.
“At the same time, the demand for wheat is declining amid the relatively low activity of exporters. The volume of current sales of wheat at the National Commodity Exchange as of April 3 is estimated at 2.1 mln tonnes against 2.5 mln tonnes a week earlier,” the report says.