Russian Deep Sea Wheat Prices Soar to Near 4-Year High

The prices for Russian deep sea 12.5% protein wheat have soared to their highest in 47 months as supply in Russia’s southern regions thins out. According to an assessment by S&P Global Platts, prompt loading 12.5% protein wheat at $241.25/mt Thursday, a surge of $3 on the day as bids climbed to catch higher asking prices.

After Egyptian state grain authority GASC‘s tender Wednesday, H1 February-loading FOB Handysize offers rose $2 on the day to $242/mt Thursday while bids appeared at $240/mt.

Prices were even firmer for later loading periods as sources expect wheat availability to be even thinner due to expectations of wheat demand remaining steady.

“Russia is pricing more business than it can realistically service,” a source said, adding: “GASC showed that 11.5% [protein wheat is] becoming much harder to find in Russia.”

Ukragroconsult, the agency that specializes in Ukraine and the Black Sea region, said last week there are signs that Russia is running low on supplies, including increased tender prices in recent months. The Russian government may offer grain transportation subsidies in a bid to pull wheat from inland areas to bolster exportable supplies, the consultancy said in a report.

Egypt, the world’s largest importer of the grain, has turned to other suppliers including the U.S., the report said, adding that the trend may continue with Russia reportedly running low.