Russia: Rains ease tension in key grain regions

“Rains in the South of Russia eased tension there last week, although dryness remains in a vast area of Voronezh, Volgograd, Saratov, Samara, Lipetsk, Tambov and Penza,” according to The Institute for Agriculture Market Studies (IKAR).

Russia’s state forecaster said the key southern agricultural regions saw overnight rains following a recent dry spell, with further rainfall expected this week. Deep water wheat export prices were at US$272-275 per tonne last week with limited market activity, IKAR said.

SovEcon agricultural analysts also said in a weekly update that the purchase price of wheat with 11.5% protein content in Russian deep-water ports was flat last week and stood at 7,600-7,700 roubles (US$240) on a carriage-paid-to (CPT) basis.

Concerns over the new crop may switch to Urals and Siberian regions because of a low level of moisture in the soil, it said.