A cycle of declining grain prices has begun in Russia. Wheat fell in price by 1.3–2.8% over the week, barley by 6.5%. Year-on-year the figures dropped by 8.6–12.6%. This is due to the entry of a new crop into the market and limited shipping in the Sea of Azov: farmers are forced to sell grain while the rate of its export is declining, as are purchasing prices, writes Kommersant.
Grain prices on the domestic market have begun to decline, according to Sovecon materials. According to the results of the week from July 20 to July 26, the purchase price of third-grade wheat decreased by 1.3%, to 12.95 thousand rubles. per ton, the fourth - by 2.3%, to 12.6 thousand rubles, the fifth - by 2%, to 11.08 thousand rubles. Barley lost 6.5% over the week, to 10.78 thousand rubles. per ton, sunflower - 2.1%, up to 40.2 thousand rubles. per ton. Year on year, the cost of wheat decreased by 8.6–8.9%. According to KSM, the export value of wheat in the port of Novorossiysk as of July 24 amounted to 15.1 thousand rubles, having lost 9.6% year-on-year. For barley, the decrease was 12.2%, to 13 thousand rubles. per ton.
Sovecon in its report associates the trend with an increase in supply due to the emergence of a new crop and disruptions in logistics in the ports of the Azov Sea.
Since July 10, Russian exporters have faced restrictions on shipping in the Azov-Don Canal due to UAV attacks. The route accounted for 25% of the total volume of Russian grain exports. Under these conditions, part of the supplies will be reoriented to the ports of the Black Sea and the north-west. But their capabilities in the context of the high season are limited.
Source: https://www.zerno.ru/node/33858