The price of wheat from Russia fell to the lowest level since 2009

The price of exported from Russia through the Black sea ports of wheat fell last week by 4%, reaching the minimum at $165 per metric ton, according to Bloomberg, citing data from the Institute for agricultural market studies (IKAR).

According to the head of IKAR Dmitry Rylko, the price of grain down for four weeks in a row, which is associated with the beginning of the harvest in the South of Russia and an unexpectedly high yield – 45.7 centners from hectare. Kiev analyst of UkrAgroConsult Marina Sych noted that the data on harvest were higher than expected, causing the price of wheat fell to the lowest since 2009 level.

“Factors of decline remain the same. The market enters a new high harvest, the world’s stock exchanges at multi-year lows and the ruble exchange rate is relatively high” — analysts of the Agency “Sovekon”.

However, in their opinion, falling of the prices for Russian grain may stay after the start of the harvest in the Central Chernozem region and to the depreciation of the ruble.

According to the agriculture Ministry, the grain harvest is underway in southern regions, Crimea, and North Caucasus Federal districts, as well as in the Saratov region. By 11 July the crops of winter and spring wheat in the whole country threshed on an area of 2.2 million hectares in 2015 to date, it has removed 1.8 million hectares), collected 9.8 million tons of grain in 2015 and 6.9 million tonnes with an average yield of 45.4 kg per hectare (in 2015– 37,5 kg/ha).

As of 11 July 2016 in the whole country grains and legumes threshed from the area of 3.2 million hectares in 2015 2.7 million), and produced 13.8 million tons of grain in 2015 — 10 million), with a yield of 43.4 t/ha (in 2015 – 37,1).