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IKAR in Mass Media

Russia grain prices slide further with little trade

17 февраля 2010 года

MOSCOW, Jan 25 (Reuters) - Most Russian grain prices extended last week's fall on the back of lower global prices, while trading was muted as buyers held out for a bigger decline and bad weather halted some shipments, analysts said on Monday.

"Grain export forward contract prices have declined following international trends and reports about abundant world supplies," the Institute for Agricultural Market Studies (IKAR) said.

It said in a weekly note the forward price for wheat with 11.5 protein content and with less than 1 percent bug damage declined to $175 per tonne FOB Novorossiisk from $182, and with damage of 1.5 percent to $170 per tonne from $180-$183 a week before.

Feed barley was valued at $140 per tonne, some $2 less than in the previous week, IKAR said.

Azov Sea and Don River shallow ports activity was very low due to difficult weather conditions, it said.

"Exporters' activity does not bring joy to sellers," SovEcon agricultural analysts said in a separate note. "Most traders refrain from making new purchases, while part keeps buying grain under old contracts at prices close to those of December."

Exporters bid for fourth-grade milling wheat at around 5,000 roubles ($166) per tonne including delivery (CPT) to Novorossiisk and at 4,500 tonnes for shallow water ports.

Average offer prices for third- and fourth-grade wheat declined by 25 roubles to 4,150 roubles and to 4,100 roubles per tonne, respectively, while feed wheat rose by 25 roubles to 3,150 roubles per tonne.

Maize prices rose 250 roubles to 4,950 roubles per tonne on active processors' purchases, SovEcon said.

"We believe that the end of the upward trend on the maize market may be close by, as maize is becoming more expensive than other cereals which may serve as its substitutes for distillers and animal feed makers," it said.

Another bearish factor is the announced sale of 150,000 tonnes of maize from the state stocks to the domestic market at a starting price of 4,200 roubles per tonne, SovEcon said. IKAR said that Russian exports from July 1 to the middle of January were 12.3 million tonnes, down from a record 12.8 million in the same period a year ago.

These included 10.4 million tonnes of wheat, down from 11.1 million and 1.6 million tonnes of barley, up from 1.5 million a year before.

SUNSEEDS, SUNOIL DOWN

Russian domestic sunseed prices declined to $428 per tonne from $445, while crude sunoil export prices fell by $25 per tonne to $865, FOB Novorossiisk, following international trends, IKAR said.

Total sunoil exports from the beginning of the season reached 165,000 tonnes versus 294,000 tonnes a year ago, it said.

SovEcon said average sunseed offer prices declined by 200 roubles per tonne to 12,900 per tonne, while crude sunoil prices lost 425 roubles, declining to 29,325 roubles per tonne.

It said the start of a record soybean harvesting in Latin America was dampening world oilseed and vegetable oil prices.

But soybean prices in the south of Russia kept rising, reaching $555 per tonne, up from $544 a week before, IKAR said.

After several weeks of sharp rises driven by speculators, domestic white sugar market prices declined to $984 from $1013 per tonne and to 29,300 roubles from 29,800 roubles on weak demand and high stocks, it said.

But it said prices could resume their uptrend because of the high price of imported raws.

Source: Reuters  |  #grain   |  Comments: 0   Views: 38

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