Export logistics problems send wheat prices down at Russian ports

Domestic procurement prices for Class 4 wheat with 12.5% protein at Russian port elevators on the Black and Azov Seas have declined sharply in recent days.

As of July 17, the steepest declines were recorded at the ports of Azov, where prices fell by 5.8%, and Taganrog, where they dropped by 9.6%. Unfortunately, more recent data are not publicly available.

The price collapse is attributed to repeated strikes by Ukraine’s Defense Forces on vessels operating in the Azov–Black Sea basin, as well as growing vessel congestion at Russian ports.

According to available data, procurement prices as of July 17 were as follows (weekly change in parentheses):

• Azov — $166.7/t (-$10.3/t)
• Taganrog — $156.5/t (-$16.7/t)
• Novorossiysk — $192.4/t (unchanged)
• Rostov-on-Don — $175.7/t (-$1.3/t)
• Taman — $192.4/t (unchanged)
• Tuapse — $184.7/t (+$5.1/t)

For comparison, procurement prices for Class 4 wheat a year earlier were:

• Azov — $182.1/t
• Taganrog — $180.8/t
• Novorossiysk — $218.0/t
• Rostov-on-Don — $186.0/t
• Taman — $206.5/t

Russian market analysts also report declining procurement prices for nearly all agricultural commodities, with sunflower seed being the only major exception.

Tags: Russia, prices, wheat, sunseed