Stabilization of the Russian wheat market

SovEcon experts predict stabilization of the Russian wheat market in the coming weeks, follows from the report of the analytical center. Recently, there has been a decline in prices for grade 4 wheat, however, experts believe that this is a temporary phenomenon and expect a reversal of the situation in the near future.

Over the last week, prices for grade 4 wheat decreased by 75 rubles, against a more significant drop in the period from mid-August, when they decreased by 150-450 rubles. Information from the report highlights that Russian wheat prices can expect stabilization after a three-month period of decline, based on growing demand and decreasing supply.

Over the past three months, prices for class 4 wheat in Russia have decreased by 21% and amounted to 11,075 rubles per ton. Demand for Russian wheat from exporters is growing, recovering after a period of decline, which is reflected in the volume of concluded contracts. As of November 14, 2.4 million tons of wheat sales contracts had been concluded, which is a significant increase from the previous month, when 1.9 million tons were concluded.

Domestic demand for Russian wheat is also growing. Over the past few weeks, flour producers have been actively purchasing wheat in various regions of the Russian Federation. This is happening against the backdrop of a reduction in supply as a result of the end of the harvesting campaign. Grain growers are less active in selling grain as they see a decrease in their inventories and wait for wheat prices to stabilize.

In general, analysts predict a stable situation on the Russian wheat market in the coming weeks. Growing demand from exporters and millers, coupled with decreasing supply, will likely help stabilize prices and keep Russian wheat at a competitive level.