Experts note that in the first week of April, Russian wheat prices fell by $2 per ton, to $238.
The global wheat market has seen a significant decline in recent days. This has affected not only Russian wheat but also supplies from other countries.
For example, American wheat fell to $256, while French wheat fell to $237.
Experts emphasize that the current downward trend is quite unexpected, as several factors should be pushing prices higher.
First, the tense situation in the Persian Gulf region is significantly hindering supplies, including grain, fuel for agricultural machinery, and fertilizers.
All of this could directly impact future grain harvests, causing them to decline.
Furthermore, alarming signals are coming from the United States regarding the current state of crops. According to the latest data, winter wheat in that country is in poor condition.
According to the report, only 35% of the acreage is currently assessed as good, compared to the five-year average of 43%.
Therefore, there is a very real risk that American producers will ultimately receive a smaller harvest than previously planned.
Nevertheless, analysts generally understand the underlying causes of the downward trend we are currently seeing.
They believe the pressure on prices is due to expected rains in the United States, which should improve crop conditions, as well as continued high supply levels in the market.
This pressure, in turn, arose because most grain-exporting countries harvested good crops last season.
As for the prospects for the wheat harvest in Russia this season, the outlook remains positive.
It is expected that heavy rainfall in the south of the country over the next fourteen days will contribute to favorable development of winter crops. Soil moisture reserves are sufficient and will be further supported by the expected rainfall.
All this means that Russia could once again reap a bountiful harvest this season. However, this is a negative factor for wheat prices, which could very well lead to a further decline.
At the same time, the decline in global prices has also impacted the price of wheat within Russia, which has been largely facilitated by the recent strengthening of the ruble, experts note.
