According to the latest data, Russian wheat is currently being sold abroad at prices close to last spring’s levels.
Over the past week, the price of wheat with protein has increased by about $7 and reached $252 per ton.
If we look at the monthly breakdown, then during this period, wheat prices have increased by about $16, analysts report.
Thus, we see that the market has almost recovered to the values of May last year, when news appeared about frosts in a significant part of Russia, which caused the loss of a large part of the crop.
Meanwhile, growth dynamics are also observed in the global wheat market as a whole.
For example, Romanian wheat has risen in price by $2 per ton and is currently trading at about $250, American wheat has immediately increased in price by $6 and is now worth about $252 per ton, Argentine wheat has risen in price by $1, to $239 per ton.
French wheat has fallen by $2 and is trading at $244 per ton.
It turns out that Russian wheat is currently one of the price leaders, which creates risks, as it reduces its competitiveness compared to other producers.
At the same time, the volume of the current year’s harvest raises questions, since this time the risk may be a low-snow winter.
Although closer to its end, snow cover has formed in most of the country, however, in a number of regions, for example, in Rostov, Volgograd or Saratov, there are still concerns that frosts could damage crops.
In addition, agricultural producers are worried that due to the small amount of snow in the spring and summer, there will not be enough moisture in the soil. This is also a noticeable threat to the condition of crops.
All this taken together may mean that record wheat harvests are unlikely to be expected in Russia this year. And if so, then there is every reason to believe that the market will continue to grow, experts note.
In particular, they predict an increase in world prices, which are directly influenced by Russia as one of the main producers supplying its products to the world market, to about 250-270 dollars per ton.
Some experts assume that the wheat market will grow until the end of the year, although not at a very fast pace.
This could be positive for producers, since receiving a larger volume of revenue could increase the marginality of production and bring more profit.
