Russian Wheat Export Prices Drop Amid Rising Freight Costs
Russian wheat export prices have dropped in recent weeks due to rising freight costs. According to Dmitry Rylko, head of consultancy IKAR, new-crop wheat with 12.5% protein content for free-on-board delivery at the first half of September fell by $6 per ton to $220 compared to the previous week.
The prices are being pressured by increasing transport costs and stagnant demand from buyers. Freight rates have gone up by around $10 per ton for major destinations, said Andrey Sizov, head of Sovecon consultancy.
Shipments from southern ports in Russia have slowed significantly due to shipping risks in the Black Sea. The Taman grain terminal has been suspended since July 30, and analysts say that estimates of wheat exports in August are becoming increasingly irrelevant.