Domestic wheat prices in Russia rose to the level of March on strong demand from exporters, according to an analytical note by the Sovecon center.
"Average prices for grade 4 wheat inside Russia by June 21 increased by 825 rubles to 10,850 rubles, according to the Sovecon report. This is the highest figure since March 2023. High demand from exporters contributed to the increase in wheat prices," the report says. in materials.
Experts expect further growth due to the strengthening of world prices in recent months and the high marginality of export sales: for example, since the beginning of June, the FOB price of Russian wheat with 12.5 percent protein has increased by $7.5, or 3.3 percent, to 232 dollars per ton, and the purchase prices for wheat in the deep-sea ports of Russia - by 1,300 rubles (by 9.7 percent), up to 14,700 rubles per ton.
"High activity of exporters provided support for domestic prices for wheat. The volume of concluded contracts for the sale of wheat, according to the National Commodity Exchange, amounted to 2.3 million tons on June 27 against 1.9 million tons a week earlier," experts write.
In early June, Sovecon estimated the potential for wheat exports from the Russian Federation in the 2023-2024 agricultural year (from July 1, 2023 to June 30, 2024) at 45.7 million tons, expecting it to be at a record high level.
