Wheat and Barley Prices in Russia Drop by 8-14.5%

In the domestic market of Russia, wheat and barley prices are decreasing. Since mid-July, prices have fallen by 8-14.5%, and over the year, they have lost 17.8-20.1%. As of July 31, the price for a ton of third-class wheat was 13,500 rubles, which is 11.3% lower than on July 10. Fourth-class wheat has decreased to 12,200 rubles per ton, losing 14.5% over three weeks and 20.1% over the year. Feed barley in central regions has dropped by 8% since July 10 and nearly 19% year-on-year. Some producers are forced to sell wheat at prices between 8,000 and 9,000 rubles per ton, although the breakeven point is around 10,000 rubles. The crisis is caused by restrictions on shipping in the Sea of Azov and the shutdown of the grain terminal in the port of Taman since July 10. Redirecting flows through other ports has increased freight costs by 30-50%. Low demand from Turkey and Egypt is also exacerbating the situation. In July, Russia exported 1.8 million tons of wheat and 101,000 tons of barley, which is 17% and 83% less, respectively. At the end of June, export quotes for wheat fell to $230 per ton. In August, wheat exports are expected to be between 2.5 and 3 million tons, which is 32-43% lower than last year's figures.