Russia gradually resuming Black Sea wheat exports - analysts

[March 14, 2022]   (Reuters) - Russia is gradually resuming wheat exports from its Black Sea ports while navigation in the Azov Sea remains restricted, analysts said on Monday.

Russia invaded Ukraine on Feb. 24, calling its actions a "special military operation".

"Exports are ongoing from all the five Black Sea (grain export) terminals," IKAR agriculture consultancy said in a note.

Prices for Russian wheat remain extremely volatile, IKAR said, adding that for wheat with 12.5% protein content from the Black Sea ports they were at $415 per tonne free on board (FOB) on March 11.

Sovecon, another consultancy, said that Russia's Black Sea terminals loaded 400,000 tonnes of wheat last week, and that vessels were going in and out of the ports there.

"Full navigation in the Azov Sea is still closed but some vessels are starting to pass through the Kerch Strait (to the Black Sea)," it added.

In the domestic market, Russian farmers started to refuse previously signed contracts amid strong demand from exporters and domestic buyers, Sovecon said.

Russia's recent decision to suspend grain exports to some ex-Soviet countries is yet to be approved, but, Sovecon said, market participants already report unofficial restrictions for rail supplies of grain from Siberia to Kazakhstan.

Russian wheat exports are down by 45.4% since the start of the 2021/22 marketing season on July 1 because of a smaller crop and an export tax that had been set at $86.3 a tonne for March 16-22.

A cold snap is expected in several winter wheat-producing regions in Russia this week but thick snow cover will keep sowings safe, Sovecon said.

Other Russian data provided by Sovecon and IKAR:

Product: Price at the end Change from week

of last week: earlier

- Domestic 3rd class 15,600 +425 rbls

wheat, European part roubles/t($135.06

of Russia, excludes )

delivery (Sovecon)

- Sunflower seeds 38,025 rbls/t +925 rbls

(Sovecon)

- Domestic sunflower 91,675 rbls/t +1,325 rbls

oil (Sovecon)

- Soybeans (Sovecon) 44,900 rbls/t +1,275 rbls

- White sugar, $581.40/t +$71.6

Russia's south

(IKAR)

($1 = 115.5000 roubles)

(Reporting by Reuters; editing by Jason Neely)

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