Russian Wheat Falls on Competition With Ukraine, Romanian Cropsby
Ukrainian prices also slide, according to UkrAgroConsult data
French wheat more expensive as its crop outlook deteriorates
Russia’s wheat-export prices resumed declines last week amid bumper crops in Black Sea nations including Ukraine and Romania, according to the Institute for Agricultural Market Studies, or Ikar.
Wheat for loading at Black Sea ports fell 1.8 percent from a week earlier to $162 a metric ton as of Friday, Dmitry Rylko, director general of Moscow-based Ikar, said by phone. Prices had held steady in the week ended July 15 after four weeks of declines.
Prices are falling on the harvests in Russia, Ukraine and Romania, Rylko said. Russia and Romania are set for record crops. Ukraine is expected to reap its third-biggest since the breakup of the Soviet Union in 1991, U.S. Department of Agriculture figures show.
“Ukraine, Romania and Russia all have a colossal volume of the grain, which we need to sell,” Rylko said. Russia will “regularly appear as winner” in tenders held by Egypt, the world’s biggest buyer of wheat, because of the lower prices, he said.
Ukraine prices fell 2.7 percent to $160.5 a ton by Thursday from Friday the week before, according to Kiev-based market analyst UkrAgroConsult. The figures from both research companies are for wheat with a protein content of 12.5 percent on a free-on-board basis.
French wheat rose for a third week as of Friday, according to crops office FranceAgriMer.
The price for wheat with a minimum 11 percent protein content for loading at the port of Rouen gained 4.6 percent from a week earlier to the equivalent of $186.39 a ton. Prices increased as crop conditions worsened, with German commodities trader BayWa AG saying the harvest this year might sink 17 percent to 34 million tons.