Russia, the world’s biggest wheat exporter, still has a surplus of 4 million to 5 million tonnes of old-crop of the grain for exports, a leading exporter of Black Sea grain cargoes said on Wednesday.
The market has been expecting the Black Sea Region suppliers, mainly Russia and Ukraine, to run out of surpluses after a hectic export programme in the second half of 2018, creating room for the United States to sell some of its large inventories.
“Russia will be exporting old-crop wheat not just in April but even in July,” said the trader who declined to be identified as he was not authorised to speak to media.
“Russia exports most of the wheat from the south but much of this surplus wheat is lying anywhere but the south. So exports will depend on pace of moving the cargoes and prices.”
Chicago Board of Trade wheat prices are down more than 7 percent this year after climbing by almost 20 percent in 2018. In February, prices have dropped almost 10 percent.
Black Sea prices for Russian wheat with 12.5 percent protein content for delivery in March were $234 a tonne, free on board (FOB), at the end of last week, down $6 from a week earlier, Russian agricultural consultancy IKAR said in a note.