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IKAR in Mass Media

Flour export boosts wheat in Russia's south-analysts

16 марта 2011 года

MOSCOW, Feb 14 (Reuters) - Third-grade milling wheat prices held strong in the south of Russia last week, as millers sought to exploit an exception to Russia's grain export ban, while intervention tenders cooled prices elsewhere.

Analysts at the Institute for Agricultural Market Studies (IKAR) said third grade milling wheat prices firmed to $238 per tonne from $237 in southern Russia despite overall price declines.

"There is a short-term shortage. The share of third class is lower because of the poor harvest and demand is up because there is the prospect of flour exports," IKAR Chief Executive Dmitry Rylko said.

Russia, which had been the the world's third largest wheat importer, banned grain exports last year after a catastrophic drought cut its grain crop by more than a third to 60.9 million tonnes.

But an exception was made for flour, which could be exported from January.

The institute said it expected flour exports to neighbouring Kazakhstan to increase as prices rise in the republic.

"Western Siberian flour becomes competitive in Central Asia, so we expect a growing export of domestic wheat flour to these markets," IKAR said.

While world wheat prices remained well supported by export demand and concerns about harsh weather in key producing regions, overall Russian wheat prices fell as the government continued intervention tenders aimed at cooling prices.

Offers of third-grade milling wheat EXW declined by 175 roubles to 7,275 roubles ($248) per tonne, SovEcon agricultural analysts said in a weekly note on Monday.

"The first signs of lower prices can be linked to continued grain sales via interventions," SovEcon said.

Concerns about corruption have also caused President Dmitry Medvedev to consider suspending the grain sales, though no decision is expected until the end of the month.

SovEcon also noted that fourth and fifth grade wheat declined by 100 roubles to 6,850 roubles per tonne and 6,625 roubles per tonne, respectively.

IKAR added that feed wheat fell to $213 per tonne from $216 per tonne, while feed barley dropped to $301 per tonne from $305 per tonne.

Both agencies reported rising maize prices, with IKAR saying its price index rose to $305 per tonne from $301 per tonne, and SovEcon recording an increase of 100 roubles per tonne to 8,750 roubles per tonne.

Sunseed prices were little changed, with SovEcon reporting a 150 rouble per tonne decline to 20,350 roubles per tonne while IKAR said prices rose to $677 from $676 per tonne.

Crude sunoil fell by 250 roubles per tonne to 47,000 roubles per tonne according to SovEcon, while IKAR reported a slight uptick, with prices at $1,587 per tonne compared to $1,584 per tonne.

IKAR also reported that domestic white sugar prices fell to $1,169 per tonne from $1,189 per tonne in southern Russia.

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

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