MOSCOW, April 4. /TASS/. Wheat prices in Russia fell to a record low since 2019, according to a statement from Sovecon, a company specializing in studying agricultural markets.
"Prices for third-class wheat in Russia fell to 11,550 rubles per ton on March 29. The last time such low figure was recorded was on November 27, 2019," the report said.
According to experts, prices dropped due to a surplus of wheat and a lack of demand from exporters. Sovecon stated that wheat supply remains high for the second part of the 2022-2023 agricultural season, despite record stocks for this time. According to the estimates of the Russian State Statistics Service, wheat stocks in agricultural organizations reached 17.4 mln metric tons as of March 1, which is 82% higher than the five-year norm.
At the same time, demand for wheat is declining due to exporters' comparatively low activity. The drop in export demand was facilitated by the decline in wheat export rates. According to Sovecon, the average price of Russian wheat as of March 22 was $279 per metric ton FOB, the lowest figure since August 2021.
Prices for Russian wheat, experts believe, will stay under pressure in the near future due to abundant supply. Analysts believe that in the future, the market will be supported by a revival of demand from traders against the background of high profitability of export operations and increasing global prices.