Russian Wheat Exports in Marketing Year to August 1 up 240% at 3.8 mil mt

(S&P Global) – Russian wheat exports between the start of the 2018-19 (July-June) marketing year on July 1 and August 1 were 3.8 million mt, 3.4 times higher than a year earlier, agriculture ministry data showed Monday.

The pace of exports accelerated last week by 12% from the previous week to 1.25 million mt. The harvest, which started earlier than usual this year due to the dry, hot weather, has been progressing well, 41.3 million mt of wheat were harvested from 42% of seeded acreage as of August 1. The yields were reported at 3.62 mt/hectare, down from 4.38 mt/ha a year earlier.

Around 35 million mt of wheat are forecast to be exported during this campaign, down from 40.5 million mt last year, according to the US Department of agriculture’s WASDE report. The agricultural ministry target is 44 million-45 million mt.

Offers for FOB 12.5% protein wheat loading in H1 September on a Handysize vessel rose to $235/mt Friday, according to sources, while bids were reported at $232/mt. The market was assessed at $233/mt Friday, the highest since February 2015 as a result of a drop in production across Europe.

Russian exporters also shipped 257,000 mt of corn in the current marketing year to August 1, down 36% on the year, while the pace of exports slowed and the volume fell 25% week on week to 38,000 mt.

Barley exports in the period totaled 641,000 mt, down 5.3% on the year, while in the latest week they more than doubled week on week to 125,000 mt.