Russian wheat export prices experienced another increase last week, accompanied by a slight adjustment in analysts’ export estimates for March. The price for 12.5% protein Russian wheat intended for free-on-board (FOB) delivery in May reached $210.0 per metric ton, marking a $2.0 uptick from the previous week, as reported by the IKAR agriculture consultancy.
Similarly, the Sovecon agriculture consultancy provided a pricing range of $210 to $212 per ton FOB for the same grade of wheat, compared to the previous range of $205 to $208.
Despite the price surge, Russia, renowned as the world’s largest wheat exporter, witnessed a rise in overseas grain shipments to 1.03 million tons last week, up from 1.02 million tons in the preceding week. Notably, wheat exports accounted for 0.82 million tons, a slight decline from 0.84 million tons in the previous week, based on port data cited by Sovecon.
Furthermore, Sovecon revised down its estimate for wheat exports in March by 0.1 million tons to 4.8 million tons, aligning with the corresponding figure from March 2023. Delays in wheat export shipments by major Russian exporter TD RIF have impacted global markets, although concerns regarding certificate-related issues are not anticipated to significantly disrupt exports this season.
In terms of planting progress, farmers had sown 1.0 million hectares of grains as of March 29, compared to 0.7 million hectares during the same period in 2023. Additionally, spring wheat planting covered 17,000 hectares, up from 8,000 hectares last year. Favorable weather conditions following rains in southern Russia have improved the outlook for the new crop, according to Sovecon’s weekly report.