Average export prices for Russian wheat (12.5% protein) reached $275 per tonne (FOB Novorossiysk) – the minimum level at which sales could stall due to little profit for exporters. It has been reported interfax Referring to Eduard Zernin, Chairman of the Board of the Grain Exporters’ Association.
According to the head of the Grain Exporters’ Association, the organization believes that export prices of wheat “have reached the minimum reasonable value and below that there is no economic sense for exporters to sell wheat.”
He believes that “despite the ongoing speculative attacks on currency exchanges associated with active play to drive down the price of paper contracts, it seems unlikely that prices will fall any further”.
According to him, Russian exporters do not see any preconditions for further reductions in prices in the physical grain market, because the costs of producers in this market are rising and the market is constantly in high demand from the world’s largest buyers.
Zernin added that grain buyers from Russia are the biggest consumers and they are more interested in the development of food safety and processing industries rather than getting a one-time benefit from stock market speculation.
formerly Bloomberg WroteIt is reported that the volume of Russian wheat supply in January and February 2023 almost doubled compared to the same period of the previous year, reaching 6.1 million tons.
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