Russian wheat is still proving competitive in the global market, despite a slow start to the harvest, and the return of export tariffs, with wheat sold to Egypt for under $200 a tonne.
Gasc, the grain authority for the world’s top wheat importer, bought a total of 235,000 tonnes of wheat in its latest grain tender, for shipment in August. This is the third time Egypt has gone to the global markets so far this month.
An Egyptian minister says that the country’s strategic wheat reserves are now enough to last until end of January.
Black Sea wins out
And once again, Black Sea product was the winner, with sales split between Romanian and Russian wheat.
Russian wheat was offered as low as 198.75 a tonne excluding freight, with Romanian wheat sold for as low as 199.75 a tonne.
An offer of French wheat at over $20 dollars higher underlines the current competitiveness of Black Sea product.
But there have been recent concerns as to whether Russian product can maintain is its competitiveness.
Russian wheat export prices have been rising due to rains in the Black Sea area, which is limiting harvesting, as farmer’s wait for dry weather to get into the fields.
Consultancy SovEcon on Monday pinned the export price of Russian wheat, excluding freight, at $201 a tonne, up $2 dollars on last week.
And at the start of this month the Russian government imposed new export tariffs, which threatens to slow exports.
Russian wheat piled up at the end of last season, thanks to export restrictions in place between February and late May this year.
The restrictions, which were intended to protect Russian consumers for high food prices as the rouble plummeted and sanctions bite, has left Russia with thick supplies, which it is now trying to draw down on the international market.
(Source – http://www.agrimoney.com/news/egypt-sale-shows-russian-wheat-is-still-competitive–8577.html)