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IKAR in Mass Media

Russia grain prices decline as harvesting nears end

25 октября 2011 года

MOSCOW, Oct 24 (Reuters) - Russian domestic grain prices declined again last week as the harvesting campaign in the country approached a close, analysts said on Monday.

Average third-grade milling wheat EXW prices declined by 75 roubles ($2.42) to 5,850 roubles ($188.39) per tonne, fourth-grade by 100 roubles to 5,650 roubles and feed wheat by 25 roubles to 5,050 roubles in the European part of Russia, SovEcon agricultural analysts said in a weekly note.

It said milling rye declined by 250 roubles to 3,950 roubles per tonne, feed barley by 50 roubles to 5,200 roubles per tonne and maize by 250 roubles to 6,000 roubles.

Russian grain harvesting was 91.6 percent over by last Tuesday, with 93.4 million tonnes reaped by bunker weight, up from 62.2 million a year ago, when the country was hit by a severe drought.

The Russian Hydrometcentre weather forecasting service said on its web site meteoinfo.ru on Monday weather conditions in the last 10 days of October will favour the harvesting of late spring grains and development of winter grains.

Prices have been also negatively influenced by high costs of transportation of grain by trucks and reports of shortages of railway wagons, SovEcon said.

It said exporters lowered prices including delivery (CPT) to deep water sea ports to 7,000-7,200 roubles per tonne from 7,200 roubles a week before. Prices at shallow water ports remained at 6,300-6,400 roubles per tonne.

Some major traders named prices including delivery to the new Black Sea port of Taman, which is under construction, but has started first shipments in August, SovEcon said.

Russia's state grain trader, the United Grain Co (UGC), said last week it will participate in building a grain terminal in Taman, which is expected to reach a capacity of 6 million tonnes per year in 2017.

FOB Prices for standard quality wheat with 11.5 percent protein content were practically unchanged last week and were fluctuating in the range of $230-$235 per tonne in Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said in a separate note.

It said FOB prices for standard wheat at shallow water terminals rose slightly to $205 per tonne from $200, while maize prices remained stable at $205 TMT.

Under preliminary estimates, Russia exported a new record 11.3 million tonnes of grain, including 9.8 million tonnes of wheat between July 1 and the middle of October, IKAR said.

Previous exports record for the period was set in the 2008/09 crop year, when exports were 7.5 million tonnes, including 6.8 million tonnes of wheat, it said.

Average sunseed prices declined to $303 per tonne from $313, IKAR said.

Prices declined in the Central Black Soil area, Volga and some other regions of the European Russia, but in the south they were stable, it said.

SovEcon said average rouble-denominated sunseed prices lost 825 roubles to 9,850 roubles per tonne on new crop record supplies.

"With emerging demand for sunseeds of $470-$480 FOB, we expect exporters to start buying at ports, which will stabilise the prices in North Caucasus," it said.

Sunoil domestic prices lost 175 roubles last week to 34,000 per tonne, while export prices remained unchanged at $1,070-$1,100 per tonne, SovEcon said.

IKAR said that crude sunoil prices remained practically unchanged, having eased to $1,068 from $1,072 a week before.

"Despite the fact of late start of the sunseed harvesting, sunoil exports have reached a record level of 57,000 tonnes by the middle of October, up from the previous record of 50,000 tonnes in the same period of 2008/09," IKAR said.

Soybean prices in southern Russia were stable at 13,500-14,000 roubles, while in the Central Belgorod region they were lower at 12,000-12,500 roubles per tonne due to abundant harvest, it said.

Under the pressure of record high supply, sugar prices declined to 20,8000 per tonne from 21,000 and to $663 from $673, IKAR said.

($1 = 31.052 Russian Roubles)

Source: Reuters  |  #grain   |  Comments: 0   Views: 54

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