Russian wheat export prices surged last week amid difficult shipping conditions in the Black Sea and a new wave of attacks in the Strait of Hormuz, analysts said on Monday.Forecasts for July wheat shipments from
Russian wheat export prices surged last week amid difficult shipping conditions in the Black Seaand a new wave of attacks in the Strait of Hormuz, analysts said on Monday.
Forecasts for July wheat shipments from Russia continued to fall, even as domestic wheat prices declined sharply across all regions this week, they added, noting that weak demand at the Azov Sea and Volga terminals was impacting domestic prices.
Shipping from Russia’s shallow-water ports on the Black Sea has remained restricted “for safety reasons” since July 10 amid drone strikes in the wider area, market sources told Reuters.
The price of Russian new-crop wheat with 12.5% protein content for free-on-board delivery in August rose $7 to $235 a ton at the end of last week compared with the previous week, said Dmitry Rylko, head of consultancy IKAR.
"The escalation in military and political risks in the Black Sea and the situation in the Strait of Hormuz — this is what is driving the overall price increase," Rylko said.
Sovecon, another consultancy, put last week's prices for Russia's new-crop wheat with 12.5% protein at $238 to $241 a ton, compared with $227 to $229 the previous week.
The agency
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