Russian grain continues to fall in price

Published 2022년 8월 2일

Tridge summary

The domestic grain market in Russia is experiencing a decline in prices due to anticipated record harvests, with wheat prices falling significantly. However, demand from exporters is on the rise due to a depreciating ruble and reduced export duties, leading to higher prices in the southern regions. Meanwhile, the export values of Russian wheat remain competitive, with notable reductions in the export duties. However, the number of countries importing Russian wheat has decreased, with some African countries ceasing purchases altogether. The number of wheat exporting companies has also decreased, with 30 companies exporting agricultural crops in July compared to 60 last year.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The cost of grain in the domestic market continues to fall due to expectations of a record harvest. This is stated in the review of the analytical center "SovEcon". According to analysts, prices for wheat of the 5th grade decreased by 375 rubles. up to 11200 rub. per ton (average price for the European part of Russia, excluding VAT). Feed grain supply is growing rapidly. “Its share tends to be relatively high for good harvest years such as the current one,” analysts say. At the same time, they believe that recent heavy rains have additionally reduced the quality: in the South, in the Volga valley and in the Center, up to 50 mm of precipitation fell. Prices rose in the South due to higher demand from exporters. Thus, the price of wheat with 12.5% protein in deep-water ports increased to 13,600-14,200 rubles/t from 13,500-14,000 rubles/t a week ago, SovEcon compared. Demand from exporters is rising due to the weakening of the ruble and lower export duties. Since the beginning of ...

Source: AgroInvestor