Russian wheat export prices fall amid increased global supply
Date
3/12/2024 5:21:16 AM
(MENAFN) Last week saw a decline in Russian wheat export prices, attributed to persistent oversupply in the global market, with analysts predicting a significant uptick in shipments from Russia during March. Reports from the Ikar Agricultural Consulting Company indicated that the price of Russian wheat, containing 12.5 percent protein and slated for supply on a Free on Board (FOB) basis in April, dropped to USD198 per metric ton. This marked a decrease of five dollars from the previous week, reflecting the ongoing challenges posed by oversupply dynamics.
Similarly, the Soficon Agricultural Consulting Company provided insights into pricing trends, placing the same category of wheat at a range between USD199 and USD202 per ton, FOB. This represented a decline from the previous week's price range of USD208 to USD212 per ton. The downward trend in prices underscores the pressures facing the Russian wheat market amid an abundance of supply in global grain markets.
Arkady Zlochevsky, head of the Russian Grain Producers Union, addressed the current market conditions during a press conference, acknowledging the need to aggressively push quantities of wheat into a sales market that has stagnated and shown limited expansion. Zlochevsky expressed concerns about the prospect of persistently low prices until the end of the season, reflecting the challenges confronting Russian wheat exporters in navigating an oversupplied market landscape.
Data released by Soficon, citing information from ports, revealed an increase in Russian grain exports during the previous week. Russia exported 1.15 million tons of grain, compared to 1.12 million tons in the preceding week. Notably, wheat exports surged to 1.03 million tons, up from 0.91 million tons in the previous week. These figures underscore the significant role played by Russian wheat in global grain markets, even amidst pricing pressures and oversupply concerns. As the market continues to grapple with these challenges, attention remains focused on the trajectory of Russian wheat shipments and their impact on global market dynamics.
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