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IKAR in Mass Media

Russia grain export prices ease, domestic up-analysts

15 декабря 2011 года

MOSCOW, Dec 12 (Reuters) - Russian domestic grain prices rose last week, mainly on demand from processors, while export prices for benchmark wheat eased slightly after Egypt bought mainly Argentine origin in a tender last week, analysts said on Monday.

Average FOB prices for third-grade milling wheat rose to 5,975 roubles ($190) per tonne in the European part of Russia, gaining 100 roubles on the previous week, SovEcon agricultural analysts said in a weekly note.

Fourth-grade wheat rose by 75 roubles to 5,775 roubles per tonne, while feed wheat increased by 25 roubles to 5,200 roubles, they said.

"The main driver behind the rise is demand from domestic processors, who are building up stocks ahead of lengthy holidays in the end of December and in January, when the market activity will be minimal," SovEcon said.

However, the thinktank added that exporters' bid prices at deep sea ports rose last week to 7,100-7,300 roubles per tonne including delivery (CPT) for fourth-grade (ordinary) wheat from 7,100-7,300 roubles a week before, probably due to a need by some exporters to replenish dwindling stocks.

"The rise of domestic prices in the last few weeks lowers the competitiveness of Russian grain in the conditions of a decline on the international markets," SovEcon said.

FOB prices for benchmark ordinary wheat eased last week after the latest Egyptian tender, at which Russian wheat constituted just a quarter of the total purchased, with the remainder bought from Argentina at a lower price.

"This was Russia's first loss in the last few months in the key Egyptian market," SovEcon commented.

The FOB price for ordinary wheat with 11.5 percent protein content in Novorossiisk declined to $235 per tonne from $236 a week before, the Institute for Agricultural Market Studies (IKAR) said in a separate note.

Wheat with 12.5 percent protein content remained firm at $242 per tonne, it added.

IKAR estimated that Russia had exported a record high volume of grain in July-November, 15.04 million tonnes, including 12.75 million tonnes of wheat. In November alone grain exports were 2.57 million tonnes, including 1.95 million of wheat, it said.

Participants at an international grains forum said last week that Russian grain exports are set to slow in the face of the competition from rivals Argentina, Australia and Kazakhstan.

SovEcon said that sunseed prices kept rising last week, adding 325 roubles on average to 10,100 roubles per tonne on rising competition between crushers, with the regions along the Volga river leading the race.

Sunseed prices rose last week to $329 per tonne from $313 a week before, IKAR said. It said crude sunoil prices were little changed at $1,075 per tonne.

SovEcon said the domestic crude sunoil price declined by 75 roubles to 33,500 roubles per tonne, while FOB Black Sea prices declined by $20-$30 to $1,070-$1,100 per tonne.

"Sunseed values, which used to be underestimated, strengthen, while sunoil prices, under the influence of downward developments on the international market, decline," IKAR said.

White sugar prices declined in the beginning of last week, but they started rising in the second half, IKAR said. They ended lower than the previous week at 19,800 roubles per tonne and $634, compared to 20,000 roubles and $648.

"We expect a further price rise, as companies will continue to attempt to raise prices before long winter holidays," IKAR said. ($1 = 31.47 Russian roubles)

Source: Reuters  |  #grain   |  Comments: 0   Views: 42

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