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IKAR in Mass Media

Russian grain prices decline ahead of new crop

10 июля 2010 года

MOSCOW, June 28 (Reuters) - Russian grain prices fell last week from a week earlier, especially in the regions where harvesting had begun, analysts said on Monday, although drought fears pushed up prices in some areas.

New crop wheat with 11.5 percent protein content and bug damage of up to 1 percent lost $1, declining to around $165 per tonne FOB Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said in a weekly note.

SovEcon agricultural analysts said in a weekly note that most big traders were not buying wheat last week.

The rest kept offering to buy fourth-grade (ordinary) wheat at 5,000-5,150 roubles ($161-$165.8), per tonne including delivery (CPT) Novorossiisk.

Prices in shallow water ports became slightly weaker at 4,200-4,300 roubles, compared to 4,200-4,400 roubles per tonne a week before, it said.

Old crop grain prices in North Caucasus, where the harvesting campaign had already started declined by 100-200 roubles per tonne on the average, while in the regions along the Volga river fears of drought pushed prices up by 50-100 roubles, SovEcon said.

It said traders set new crop third-grade wheat EXW prices at 4,000-4,300 roubles per tonne for third-grade wheat, 3,800-4,000 roubles per tonne for fourth-grade wheat. New crop fourth-grade wheat is expected to be at 4,500 roubles per tonne.

However, the wheat crop harvesting has yet to start.

Barley, which is already being harvested, is offered in silos (IS) at 2,000-2,400 roubles per tonne, SovEcon said.

Feed barley is offered at $120 per tonne FOB Novorossiisk, IKAR said.

IKAR has lowered its grain output forecast because of abnormal heat in some regions to 87.5 million tonnes from previous 88.5 million, including 57.0 million tonnes of wheat down from previous 58 million.

STRONGER SUNSEED, SUNOIL SUGAR PRICES

Following stronger crude sunoil prices, old sunseed crop prices have increased by another $6 to $376 per tonne, IKAR said.

Average crude sunoil prices rose by 500 roubles to 25,000 roubles per tonne, while sunseed prices rose by 75 roubles to 10,975 roubles per tonne, as some crushers raised prices, SovEcon said.

New crop winter rapeseed purchase prices are expected to be in the range of 8.5 roubles to 9 roubles per kg, which is close to export prices, IKAR said. SovEcon said new crop EXW rapeseed prices were 7,500-8,000 per tonne in North Caucasus.

Heavy rains in southern Russia may cause losses to potentially record harvest, IKAR warned.

White sugar prices strengthened further to $793.3 per tonne from $753.4, or to 24,600 roubles from 23,500 roubles in Krasnodar, IKAR said.

Current cost of production of white sugar from raws is about 26,000 roubles per tonne, and in July it may rise to 28,000 roubles per tonne, so there is a potential for further strengthening, it said.

Source: Reuters  |  #grain   |  Comments: 0   Views: 95

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