Prices for Russian wheat at international tenders are already below 200 $/t – broker

Wheat prices on MATIF weakened again and are at the lowest level in 3.5 years. The tender for the purchase of wheat by Algeria showed strong competition from the Black Sea countries.

This was reported by the Polish broker Przemek Blazzejewski in the social network X.

According to him, the Algerian agency OAIC purchased about 870-900 thsd tonnes of wheat at the prices of 227-228 USD/t CIF, probably mainly from the Black Sea countries.

“Low prices of the deals indicate that Russian prices have already fallen below 200 $/t FOB. According to traders, it was about 198 $/t FOB. Will the drop in wheat prices attract new demand from Morocco and China, the key markets for EU wheat (mainly France) this season? We can be quite skeptical about the possibility of increasing wheat sales from the EU, rather, we can see further decline in MATIF prices to 180 euros/t,” the broker said.

As a reminder, Lithuania reported that Russia may be exporting stolen goods from Ukraine through the Baltic Sea ports, which led the government to introduce the enhanced control measures.

Tags: wheat, Morocco, Russia, China, EU, prices, France, Black Sea region