The growth of prices for Russian wheat activates the exports of European grain

After the message of the Rosselkhoznadzor about the possible restriction of export of wheat from Russia, the bid prices for Russian wheat with protein of 12.5% increased to 244-250 $/MT FOB for deliveries in February and March, while demand prices remain at 238-240 $/t FOB. Wheat with protein 11.5 percent is already available at 242-245 $/t FOB, while the bid price is 234-236 $/t FOB.

For the week, wheat exports from Russia increased by 6% to 367 thousand tonnes, while total exports in January will be much lower than in previous months.

the Growth of prices for Russian wheat improves export prospects for European wheat, which is now offered at 240-243 $/t FOB.

After the jump in prices for Russian wheat futures milling wheat in Paris rose 1 €/t to 205 €/t or 233,09 $/t

Exchange in USA on Monday did not work, as the country celebrated the day of memory of Martin Luther king.

Additional factor of pressure on the price of Russian wheat will become the new payment system acquired by the Egyptian state operator GASC to tender grain. Next tender the payments will be made by opening letters of credit on sight (payment under a letter of credit is made without a grace period immediately after the submission of documents for the shipment) that will reduce the purchase price of GASC 5-6 $/t. In recent times the letters of credit under the supply of wheat has guaranteed payment only for 180 days, limiting the number of people willing to participate in the auction and increased the costs.