• IKAR in Mass Media

 

 → IKAR in Mass Media → #308

IKAR in Mass Media

Grain prices up in European Russia, down in Siberia

01 февраля 2011 года

MOSCOW, Jan 24 (Reuters) - Grain prices rose last week in the European part of Russia, while prices in Siberia declined, analysts said on Monday.

SovEcon agricultural analysts said in a weekly note that in the European part of Russia milling rye added some 150 roubles ($5.02) per tonne to 7,350 roubles per tonne EXW, while other cereal prices rose 100 roubles per tonne on average.

In the southern part of Russia, third-grade milling wheat led the race, the Institute for Agricultural Market Studies (IKAR) said in a weekly note.

"We tend to associate it with generally rather scarce supply of high quality wheat in the south of Russia, and growing demand for wheat flour aimed at export markets, Azerbaijan first of all," IKAR said.

Third-grade wheat rose to $228 per tonne from $215 in southern Russia, fourth-grade to $217 from $205, feed wheat to $207 from $202, feed barley to $283 from $280, maize to $289 from $286, it said.

"We observe Ukrainian corn in the Russian import pipelines, although still in modest quantities," IKAR said.

"There are reports that transnational traders have signed contracts to import barley and maize from Ukraine," SovEcon said.

"But the actual shipments have not been confirmed due to export regulation problems in Ukrane. Traders price Ukrainian maize at $260-$270 per tonne DAF." Analysts expect the Russian government to start selling its intervention stocks in February.

"The government plans to sell 500,000 tonnes of grain per month, including 400,000 tonnes of food grain and 100,000 tonnes of feed grain, selling a total of 2.5 million tonns in 5 months," SovEcon said.

It expects the government to supply to the market 3.6 million tonnes of grain in February-June, including 1.1 million tonnes to Moscow, St Petersburg and drought-hit regions at a low fixed price.

SovEcon expects the sale of such a low volume will have a limited influence on prices.

"Many processors traditionally have low stocks after the New Year holidays. And they will not hurry to buy awaiting the intervention grain to arrive. However, any disruption or delay will raise demand and push prices sharply up," it said.

SUNSEEDS, SUNOIL DOWN EVERYWHERE BUT SOUTH

SovEcon said average sunseeds and sunoil prices kept declining last week on high supply of cheap palmoil, imports of which were high at 79,000 tonnes in December, but less than the record 91,000 tonnes imported in November.

In southern Russia, large purchases by some crushing plants pushed sunseed prices up in the region, although general market activity was very modest, IKAR said.

Sunseed prices in southern Russia rose to $677 per tonne from $667 and crude sunoil to $1,582 per tonne from $1,571, it said.

The price of soybeans in southern Russia increased to 17,000 roubles per tonne from 16,000, it said.

Sugar supply is getting tight, but prices declined to $1,153 per tonne from $1,203 and to 34,500 roubles from 36,200 last week, IKAR said.

"The cause of such a paradoxical movement is associated with market expectations of an earlier customs duty lowering from March 1 instead of May 1, which would lower the costs of white sugar refining from raws to 32,000 roubles per tonne from current 35,000," it said.

Source: Reuters  |  #grain   |  Comments: 0   Views: 49

There are no comments yet. Be the first!

Only authorized users can comment.