IKAR in Mass Media

Russian grain prices decline further - analysts

27 марта 2009 года

MOSCOW, March 16 (Reuters) - Most Russian grain prices declined further last week on low market activity caused by falling demand from exporters and melting snow which complicates access to some grain silos, analysts said on Monday.

"There currently are no factors which could stop the decline. Demand from private traders is low, while the government purchases are slow," SovEcon agricultural analysts said.

Last week the government bought just 131,000 of grain compared to 205,000 a week before.

A rise in international wheat prices may be short-lived, as global stocks of wheat and maize had been revised upwards. This may accelerate the decline of prices in Russia, SovEcon said.

Ordinary food wheat declined to $163 per tonne, while feed barley was down to $130 per ton, FOB Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said. It said in the south of Russia ex-silo third-grade wheat prices declined to $158 per tonne, fourth-grade to $133, fifth grade feed wheat to $110 per tonne. Feed barley rose slightly to $91 per tonne, while corn remained broadly stable at $106.

SovEcon said average offer prices for fourth-grade wheat and feed barley fell by 125 roubles ($3.59) per tonne, third-grade wheat lost 100 roubles and other cereals 50 roubles.

By March 7, Russian grain exports exceeded 15 million tonnes, including 13 million tonnes of wheat, according to preliminary data, IKAR said. It said crude oil export prices have not changed much and are in the region of $640, FOB Novorossiisk.

SovEcon said average domestic crude sunoil offer prices declined by 1,000 roubles, but may stabilise if export prices stay at current levels. Sunseed offer prices were largely unchanged, it said.

Soybean offer prices in southern Russia were $484-$512 per tonne, IKAR said. It said white sugar price rose to $640 per tonne from $607 a week ago.

Source: Reuters | #grain | Comments: 0 Views: 45

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