Rus­sia slows ex­ports

Tight wheat sup­ply pushes prices

Warwick Daily News - South West Queensland Rural Weekly - - News - Madeleine Stuch­bery news@ru­ral­weekly.com.au

RUS­SIA ap­pears to be tak­ing mea­sures to slow wheat ex­ports as global sup­plies grow in­creas­ingly tight.

The Com­mon­wealth Bank said Rus­sian reg­u­la­tors were step­ping up phy­tosan­i­tary checks on Rus­sian wheat ex­ports, po­ten­tially clos­ing ship-load­ing fa­cil­i­ties for a pe­riod of time.

In Au­gust, The Weekly Times re­ported ru­mours from the Black Sea that Rus­sia may work on slow­ing wheat ex­ports, caus­ing prices to rise to above the $400 a tonne mark.

Com­mon­wealth Bank mar­ket an­a­lyst Tobin Gorey said any im­ped­i­ment on Rus­sian wheat ex­ports could have a flow-on ef­fect for Aus­tralia.

“It’ll have an im­pact, be­cause what it’ll do is push global prices higher, and that means the price of which Aus­tralia gets our ex­port par­ity will be higher,” Mr Gorey said.

“That’s more a con­sid­er­a­tion at this stage for the west­ern states of Aus­tralia over the east. It’s still con­di­tional, if it hap­pens. We sus­pect it will.”

Mr Gorey said Rus­sian moves to slow ex­ports was “to pro­tect Brand Rus­sia”.

“The mar­ket, though, does not seem to ac­cept that slower ex­ports is sim­ply serendip­ity,” Mr Gorey said.

“In­stead, the mar­ket is think­ing that the miss­ing Rus­sia flow will in­stead come from the still well-sup­plied US.”

The Rabobank Septem­ber com­modi­ties re­port showed global wheat stock avail­abil­ity was tight­en­ing, with de­te­ri­o­rat­ing Aus­tralian stocks.

“The red hot pace of Rus­sian ex­ports puts short-term pres­sure on cash prices, but can­not be sus­tained,” the re­port said.

PHOTO: BRETT WORTMAN

WHEAT PRICES: Rus­sia has slowed wheat ex­ports as global sup­plies get tighter, driv­ing prices up­wards.

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