Russian Wheat Export Prices Plummet Amid Freight Rate Spikes and Shipping Risks

Russian wheat export prices have fallen due to rising freight costs and stagnant demand. Prices for new-crop wheat with 12.5% protein content dropped by $6 to $220 per ton last week, according to Dmitry Rylko of consultancy IKAR.

Freight rates continued to rise, increasing by around $10 per ton for major destinations, said Andrey Sizov of Sovecon. Despite this, export prices remain low due to stagnant demand from final customers.

The harvesting of the new wheat crop is in full swing in Russia, but operations at the Taman grain terminal have been suspended since July 30, contributing to a slowdown in shipments from southern ports. Analysts estimate that wheat exports from Russia in August will be approximately 3.1 million tons, but this figure may become increasingly irrelevant due to the decline in ship arrivals.