Russian grain is rising in price. The reasons: a falling rouble and the Ukrainian crisis
2014-03-13 10:36:07
The rouble exchange rate decrease benefits Russian grain exporters: over the last three weeks, wheat price in the Russian Black Sea ports has grown by RUB 300-400/MT to about RUB 9900 (up 3.7%), Institute for Agricultural Market Studies (IKAR) Director General Dmitry Rylko told Vedomosti daily. This is the price for which exporters are executing contracts signed as early as two to three months ago. Between February 5 and March 5, 2014, the dollar grew to a bit lesser degree – from RUB 35.51 to RUB 36.32 (up 2.3%).
“Market players fear that Russia and Ukraine will reduce grain supplies if a conflict breaks out,” the grain market player points out.