Milling wheat price reduction was observed in Russian export market. Last week prices for milling wheat with 12.5% and 11.5% protein decreased by $1-2 to $171-172/MT FOB and $165-167/MT FOB in Novorossiysk port, respectively, for delivery in September.
The world market was again the main factor of pressure. High supply of feed wheat and wheat with 11.5% protein from Russia put additional pressure amid moderate demand from importers. Moreover, strong competition and struggle for buyers also contributed to decrease in prices.
The decision of the government to reduce wheat export duty to zero from September 15, 2016 until July 1, 2018 was very important news last week. Russia intends to increase wheat exports to all-time high in the current season. (UkrAgroConsult/Business World Magazine)