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IKAR in Mass Media

Russia exporters buy wheat as await ban end-analysts

22 мая 2011 года

MOSCOW, May 16 (Reuters) - The price of fourth-grade milling wheat, Russia's main export cereal, rose last week, as traders kept buying it on expectations of an early lifting of an export ban, analysts said on Monday.

Russia, hit by a severe drought unrivalled in more than a century, imposed a ban on grain exports from Aug. 15, 2010 to July 1, 2011. Only flour exports were permitted from January.

Officials have said the ban may be extended to the end of 2010. But some traders believe that the ban may be lifted in October and some wheat exports may be allowed from the south of Russia already in July.

"Exporting companies have resumed modest purchasing activities at elevators, which are close to ports, as they believe that exports will resume sooner or later," the Institute for Agricultural Market Studies (IKAR) said in a weekly note.

"Traders are buying fourth-grade wheat for delivery to their elevators located in southern Russia and to port elevators," SovEcon agricultural analysts said in a separate note.

It said fourth-grade wheat price rose by 25 roubles ($0.889) last week to 5,475 roubles per tonne EXW European Russia.

IKAR said prices rose in roubles, but in dollars the price of fourth-grade wheat declined in southern Russia to $187 per tonne from $188.

SovEcon said EXW third-grade and feed wheat prices declined by 25 roubles last week to 5,550 per tonne and 5,100 roubles per tonne, respectively in the European Russia.

In dollar terms, third-grade wheat price was unchanged at $198 per tonne and feed wheat price was stable at $182 per tonne, IKAR said.

It said feed barley market was extremely illiquid and its price declined to $246 per tonne from $256.

"Sales of the government intervention stocks were the main factor behind the price decline," SovEcon said, adding the EXW barley price declined by 275 roubles to 6,175 roubles per tonne.

Maize price fell to $282 per tonne from $288, IKAR said.

It said Russia exported 218,000 tonnes of flour in July 2010-April 2011, including 191,000 in January-April. In April alone Russia exported a record high monthly volume of 80,000 tonnes.

SovEcon said average EXW sunseed prices in European Russia declined by 225 roubles to 17,825 roubles per tonne while crude sunoil declined by 500 roubles to 39,325 roubles per tonne.

Prices declined in the Volga region and North Caucasus, but were stable in the Central Black Soil region, SovEcon said.

White sugar prices fell to $937 per tonne from $1001 IKAR said, adding prices could decline further as it estimated the cost of production of one tonne of white sugar from imported raws at around $850.

Source: Reuters  |  #grain   |  Comments: 0   Views: 69

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