Black Sea market hits 3-month high amid bad weather, logistics challenges

Russian winter wheat regions are facing extreme cold, with temperatures expected to plunge to minus 30 C. “There is so much bad weather and no cash flow for farmers,” said a Russia-based exporter, highlighting the potential impact on winter wheat production and the reluctance of farmers to sell. CPT bids ranged from Rb15,000 to Rb15,700/mt ($196-$205/mt). The recent strength of the ruble, which hit Rb75/$1 last week, has compelled exporters to reduce local purchase prices to maintain margins. Russian wheat was assessed at a $1.25/mt premium to the MWM at $232/mt on Feb. 3, while Ukrainian wheat was assessed at $228/mt, a $2.75/mt discount to the MWM, widening its spread against Russian 12.5% wheat to $4-$5/mt, the highest since November. Logistical challenges continue to mount, with vessels at Russian ports now experiencing loading delays of seven to 15 days. Demand for high-protein Black Sea wheat remains steady, particularly during the Ramadan season, as buyers seek alternatives ...