MOSCOW, June 5 (Reuters) – Russian wheat export prices have edged higher for a third consecutive week due to persistent concerns over wheat crops in Russia and Ukraine to be harvested this summer, analysts said on Monday.
Cold weather in central Russia is delaying crop development.
Last week, Russia’s agriculture ministry downgraded its forecast for Russia’s 2017 grain crop to 100-105 million tonnes from a previous 110 million tonnes due to unfavourable weather.
Less than ideal growing conditions have Russian wheat export prices up a few dollars per tonne in recent weeks.
Russian prices have also been supported by demand from Egypt, the largest market for Russian wheat. Last week, Egypt’s state buyer agreed to buy 120,000 tonnes of Russian and 60,000 tonnes of Romanian wheat, for July 1-10 delivery.
While the current growing season might not be ideal, Russia expected to carry in a record amount of grain from last year’s record harvest. That means total supply should be as ample as it was in the 2016-17 crop year.