Russian wheat exports may reach 3.7 mln tonnes in April - Rusagrotrans

MOSCOW. April 8 (Interfax) - Exports of wheat from Russia could amount to 3.7 million tonnes in April, the analytical center of Rusagrotrans said.

This is higher than the figure for April last year, which was 2.39 million tonnes, and higher than average exports over the past five years of 3 million tonnes, the center told Interfax.

Regarding the price situation, the center's analysts said that the exchange wheat market weakened in the second half of last week and at the beginning of this week. Prices on the physical market also mainly declined, despite the situation in the Persian Gulf and the condition of winter wheat in the United States, where, according to the first report on crop conditions, only 35% of areas are in good condition, compared with an average of 43% over five years. Pressure on prices came from expected rains in the U.S. and high current supply on the market.

Prices for Russian wheat (12.5% protein) for April delivery fell over the week to $238 per tonne FOB. A week earlier, they stood at $240 per tonne. U.S. wheat prices weakened by $2 to $256, and French wheat was also down by $2 to $237 per tonne. An exception was Romanian wheat, whose price rose by $1 to $242 per tonne.

According to the center, Tunisia purchased 100,000 tonnes of wheat at a tender for delivery from May 5 to June 10 at a price equivalent to FOB Novorossiysk of around $233-$234 per tonne. Jordan purchased 60,000 tonnes of wheat for delivery in the second half of July, with the price equivalent to FOB Novorossiysk at around $233 per tonne.

Procurement prices for wheat (grade 4, 12.5% protein) at Russian deep-water ports continued to decline under the influence of falling FOB prices and the ruble's strengthening. Over the week, for delivery by road, wheat fell by 150 rubles to 16,500-16,600 rubles per tonne (excluding VAT), and for delivery by rail, it fell by 100 rubles to 16,400-16,500 rubles per tonne. In shallow-water ports, prices fell by 50 rubles to 15,200-15,300 rubles per tonne.

Rusagrotrans also said that prices for grade 4 wheat (12.5% protein, EXW elevator) fell by 50 rubles in the south to 14,700-15,400 rubles per tonne (excluding VAT); in the southwest of the Volga region, they fell by 100 rubles to 12,100-13,000 rubles, and in the center, they remained at 12,500-13,300 rubles per tonne. In Siberia, prices for grade 4 wheat remained at 10,000-11,000 rubles per tonne, with weakening demand from Kazakhstan and increased demand from processing.

Speaking about the conditions for the new crop formation, analysts said that abundant precipitation in the south over the next two weeks will have a favorable effect on winter crop development. Temperatures are expected to decrease, but they will remain in positive territory and will not harm winter crops. A brief temperature drop in the center will also not be critical for crops. In the Volga region, the snow cover will completely melt by the middle of next week. Moisture reserves are at sufficient levels, and expected precipitation will maintain them.