The price of Russian wheat fell below $300 per ton

Published Mar 9, 2023

Tridge summary

The price of Russian wheat has dropped below $300/t for the first time since August 2021 due to increased competition from other exporting countries. This comes as the "grain deal," which has allowed for the export of 23 million tons of grain from Ukrainian ports, is set to expire on March 18. While the extension of the deal is being negotiated, both the UN and the UN Secretary-General have called for its extension, citing the contribution of Ukrainian and Russian food products and fertilizers to global food security and price levels. SovEcon expects further declines in Russian wheat prices in the short term, but notes that the potential for decline is limited and global wheat prices are currently at a low level with a tight balance and high risk of supply disruptions from Black Sea ports.

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

Original content

Last week, the price of Russian wheat with 12.5% protein dropped to $294-298/t from $300-303/t a week earlier, the SovEcon analytical center estimated. FOB prices fell below $300/t for the first time since August 2021, Russian wheat is getting cheaper amid fierce competition from other exporting countries, analysts said. Since mid-February, prices on the Chicago Stock Exchange have fallen by 12% to $6.95/bushel ($255/t), on the Paris Stock Exchange — by 10% to 271 euros per ton ($289/t). Sales at these sites are spurred on by expectations of the extension of the “grain deal”. “In our view, the chances of such an outcome are high, especially after Beijing called for an extension of the deal in its February 24 statement,” SovEcon said in a statement. The "grain deal" expires March 18. On March 2, the Russian Foreign Ministry reported that it was still not working, the West was sabotaging the implementation of the Russian part of the agreements. Later, the official representative of ...

Source: Zol