Weak­en­ing euro boosts wheat ex­ports against Rus­sian com­pe­ti­tion

Irish Independent - Farming - - FINANCE -

RUS­SIAN wheat-ex­port prices achieved only mar­ginal gains for a sec­ond week as the weak­en­ing euro made com­pet­ing Euro­pean ship­ments more ap­peal­ing.

Wheat for load­ing at Black Sea ports climbed to $193 a met­ric tonne last week, ac­cord­ing to data from the In­sti­tute for Agri­cul­tural Mar­ket Stud­ies (IKAR).

The euro lost 1.5pc last week rel­a­tive to the US dol­lar, mak­ing sup­plies from the Euro­pean Union more com­pet­i­tive.

The weak­en­ing Euro­pean cur­rency is mak­ing it hard for Rus­sian prices to in­crease.

Euro­pean and Rus­sian sup­plies of­ten tar­get the same mar­kets.

Rus­sian ex­ports

Rus­sian ex­ports were 21pc faster this sea­son as of Oc­to­ber 25 — com­pared to a year ear­lier, gov­ern­ment data shows. EU ship­ments to over­seas mar­kets lagged 23pc through Oc­to­ber 24 even as the crop is big­ger this year.

In other mar­kets: ÷ Ukrainian wheat re­mained un­changed at $191/t last week ÷ French wheat rose 2.2pc to €165.09 ($191.95) a ton last week, FranceA­griMer data shows. The grain is for de­liv­ery at the coun­try’s port of Rouen with a min­i­mum of 11 pc pro­tein con­tent. ÷ Ger­man wheat climbed to €168.75 as of Fri­day, up 1.2pc from the pre­vi­ous week, ac­cord­ing to Com­mod­ity3.

The data is for wheat with 12pc pro­tein for load­ing at Baltic Sea ports on free-on­board terms.

(Bloomberg)

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