Russian refiners raise the price of milling wheat

late planting and a shortage of quality beans has led to growth in the past week the price of wheat, class 3 protein of 12.5% for 150 RUB/MT to 9,400 rubles/t or 151 $/ton, wheat of 4 class – 100 RUB./ton to 9175 RUR/t, 5 class – 225 RUR/t, to 8,125 roubles per tonne on EXW (European part).

the price Increase is due to increased survey from  processors accumulate reserves in the offseason.

at the End of may the average price of wheat 3 CL exceeded last year's level by 13%, wheat 4 and 5 cells by 25%.

the fastest growing market in Siberia, where due to inclement weather for seeding spring wheat  during the week the price of 3 cells increased by 850 RUB/ton to 8500 ruble/t, 4 KL – 675 RUR/t, 5 CR 550 RUB/t

at the same time in the South, grain prices of the old crop is almost unchanged for low export demand and feed barley fell by 75 roubles/t

it is Expected that the starting price for grain of the new crop will be 8% higher than last year and will be 10200-10400 tonne for barley and 10500 RUB/ton for wheat of 12.5%.

Export prices for wheat with 12.5% of the new harvest rose by $1/MT to 205 $/t, while the grain of the old crop has fallen by $1/t up to 210 $/t

Through the arid conditions in the South of Russia and in separate regions of the Volga region, as well as the delay of sowing in Siberia for excessive precipitation, experts expect a reduction in gross yield of wheat and rye 10%.

the Ministry of agriculture forecasts grain production at the level of 105-110 million tons, while the analytical estimate it in the range of 110-124,9 mln tons.

Recall that in 2017 Russia gathered a record 135.4 million tons of grain, in particular:

barley 20.6 million tons (2.1 million winter and spring t 18.5 million t),

corn 13.2 million tons,

rye 2.5 million tons,

buckwheat 1.5 million tons,

heck almost 1 million tons.

• wheat 85,9 million tons (winter of 62.9 million tonnes and spring 24 million tons),