IKAR in Mass Media

Russian grain prices stable, wheat rises

29 декабря 2008 года

MOSCOW, Dec 8 (Reuters) - Russian grain prices were stable last week, while average wheat prices edged up on government grain purchase interventions, analysts said on Monday.

Government purchases into the intervention fund set another weekly record: almost 663,000 tonnes. Total volume of purchases reached 2.6 million tonnes, the Institute for Agricultural Market Studies (IKAR) said.

In the last few weeks, intervention prices have been much higher than cash market prices. The difference between export prices in the south of Russia and prices at the intervention tenders remained very large of about $40 per tonne, it said.

SovEcon agricultural analysts said average domestic third-grade wheat offer prices in the European part of Russia rose by 225 roubles ($8.01) per tonne, fourth-grade by 75 roubles per tonne while feed wheat added modest 25 roubles. IKAR said most export prices remained practically unchanged, while ordinary food wheat rose to $163 per tonne, feed barley to $133, both FOB Novorossiisk.

SovEcon said exporters offered 3,500-4,200 roubles per tonne of fourth-grade wheat (CPT deep and shallow water ports) and 3,500 roubles per tonne of feed barley (CPT Novorossiisk).

The government plans to increase prices at its intervention tenders for some regions, which have shortage of storage facilities in order to stimulate sales to other regions which have free storage capacities.

IKAR said the government is also negotiating with producers and traders ways to organise subsidies aimed at stimulating esports. So far, there are various options of how to subsidise exports of 10 million tonnes of grain.

Sunseed prices rose last week as some large crushers raised bid prices by 100-500 roubles per tonne, while average offer prices added 175 roubles, SovEcon said.

IKAR said the major crushers have not changed the bid prices keeping them between $207 and $215 per tonne. But some companies with tight stocks resumed purchase injecting real cash into the market.

Crude sunoil export price declined to $670 per tonne, IKAR said. Domestic crude oil price continue to descend to $608-$626 per tonne.

SovEcon said average crude sunoil offer prices lost 250 roubles per tonne last week. The analysts expect a stabilisation of prices on rising exports. Soybean prices remained unchanged. Beans were offered at $405-$435 per tonne, soybean oil at $590-$625 in the south of Russia, IKAR said.

Last week, sugar prices rose to $532 per tonne from $525 in Krasnodar, it said.

Source: Reuters | #grain | Comments: 0 Views: 50

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