The Ministry of agriculture of Russia expects lower prices in the new season
Russia's agriculture Ministry expects a decline in domestic grain prices over the next 3 months and sees no prerequisites for the emergence of shortage of grain. Since March, manufacturers are stepping up sales in anticipation of the spring sowing campaign.
High domestic prices reduce the competitiveness of Russian grain on foreign markets, which will soon lead to a slowdown in exports. Currently, the USDA conducts a number of activities that contribute to the decline in domestic grain prices.
in Particular, proposed from February 2019 to introduce subsidies on tariffs on transportation of grain from Siberia, which activates the transport of goods in the European part of the country, stabilize the prices and satisfy the demands of flour milling, baking and feed production.
in addition, from October resumed the sale of grain from the intervention Fund, which will provide additional suggestions for processors and consumers. Already implemented 878 thousand tons of grain, and Fund balances as at 25 January were 2,836 million tons.
we will Remind that the Ministry of agriculture increased the forecast of wheat production in the new season to 77-80 million tons.
the Growth of export prices for Russian wheat last week has slowed down, although manufacturers are still holding back sales in expectation of strengthening of the ruble and higher prices.
For too high prices of Russian wheat in the Egyptian GASC tender last bought French and Romanian wheat.
the Price of wheat with protein of 12.5% on FOB-Novorossiysk at the end of the week was 245 $/t free on Board, which corresponded to the level of the previous week. While the price of the same wheat in deep-water ports rose by $2/t to 249.5 $/t free on Board.
According to the FMS as of 31 January, Russia exported 31.4 million tons of grain, which is 4% higher compared to the corresponding period of the previous MG. In particular, wheat exports increased by 13% to 26.7 million tonnes, barley – decreased by 11% to 3.35 million tons, corn - shrank by 50% to 1.39 million tonnes was exported In January to 2.9 million tons of grain, of which wheat – 2.3 million tonnes.
