Export Prices of Russian Wheat Rise

Russian wheat export prices rose last week in response to news of a large Iranian purchase and against a backdrop of limited supply, as bad weather at ports hampered shipments, analysts said.

The price for Russian wheat with 12.5% protein content for free-on-board (FOB) delivery in the second half of October was $228 per metric ton at the end of last week, up $3 from the previous week, said Dmitry Rylko, head of the IKAR consultancy.

"Some international demand has emerged, and the market responded," he said.

Last week, traders estimated Iran's wheat purchase, mainly from Russia, in the range from 500,000 metric tons to 1 million tons, and even up to 2.2 million tons.

The SovEcon consultancy estimated the price for Russian wheat with 12.5% protein content at $228-$229 per metric ton FOB, compared to $226-$228 at the end of the previous week.

"Support for Russian wheat still comes from limited supply, especially in the south, plus a stronger rouble and higher export tax," the agency said in a weekly note.

"Despite higher prices, Russian sales seem firm — lineup and outstanding export sales rose sharply this week."

Russia has once again significantly increased export duties to 655.6 roubles per metric ton, starting on September 24.

SovEcon maintained its assessment of September wheat exports at 4.2 million metric tons. Railway operator Rusagrotrans gave a separate estimate of 4.3-4.5 million tons, also unchanged from last week.

According to Rusagrotrans, approximately 2.2 million tons were shipped over September 1-18.

IKAR lowered its estimate for wheat exports in September to 4.0-4.2 million tons from 4.2-4.4 million tons a week earlier due to bad weather in ports.

Russia has already harvested 114 million tons of grain, including 84 million tons of wheat, Agriculture Minister Oksana Lut said at the end of last week. She confirmed the previous forecast for the 2025 grain harvest at 135 million tons.

Other Russian data provided by Sovecon and IKAR:    

 (Reuters)