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IKAR in Mass Media

Russia grain export prices to rise further after GASC

03 сентября 2012 года

MOSCOW, Sept 3 (Reuters) - Russia's grain export prices are expected to rise further this week after Egypt, the world's biggest wheat importer, bought 240,000 tonnes of Russian wheat this weekend.

Egypt's General Authority for Supply Commodities (GASC) agreed to buy Russian wheat from Venus, Glencore and Soyuz during its fourth international wheat purchase since the July 1 start of the 2012/13 fiscal year.

"Last Saturday' GASC tender confirmed the fact that Russian wheat remains the most competitive... (Russian) grain prices may strengthen slightly this week," Dmitry Rylko, the head of the Institute for Agricultural Market Studies (IKAR), said in a note.

The GASC purchased wheat for $321-323 per tonne on free-on-board (FOB) basis, while Russia's FOB level for 12.5-percent wheat stood lower at $313-315 per tonne last week, IKAR said.

SovEcon agriculture analysts pegged Black Sea FOB wheat prices at $315-325 per tonne last week, up from $310-315 per tonne.

GASC is seeking to secure supplies amid rising concerns about weather-shortened crops in key exporting nations, particularly drought-hit Russia, Egypt's top supplier.

Russia's government is trying to cope with a drought which has slashed grain yields by more than a quarter.

Officials are promising no grain export limits, yet industry experts believe they could occur as soon as October.

Egypt bought Russian wheat for October 11-20 shipment.

Global wheat prices fell more than 1 percent on Friday in reaction to month-end fund positioning, profit taking, and bearish news that Russia will not limit its grain exports.

Wheat gained half a percent for the week but was down nearly 2 percent for August.

Chicago Board of Trade (CBOT) grain futures markets will be closed on Monday, the U.S. Labor Day Holiday.

Prices for the new corn (maize) were quoted at 8,600 roubles per tonne on a carriage-paid-to (CPT) basis in shallow-water ports, IKAR added. SovEcon quoted corn prices in North Caucasus at 8,750 roubles per tonne on EXW (ex-silo) basis.

The average Russian prices for fourth-grade milling wheat in deep-water ports were stable last week at 9,600-9,800 roubles per tonne on a CPT basis.

Prices in shallow-water ports reached 9,000-9,100 roubles per tonne, up from 8,800-9,000, according to SovEcon.

Russia's average domestic EXW prices for third-grade milling wheat were unchanged at 8,300 roubles ($260) per tonne. Fourth-grade prices were unchanged at 8,275 roubles.

Price growth in the drought-damaged Urals and Siberia continued last week, SovEcon added. Wheat prices there rose by 100-300 roubles per tonne last week.

Temperatures will be higher than usual in Russia during September, Russia's state forecaster said on Monday, putting pressure on the autumn crop. All key grain regions including the Urals and Siberia will see temperatures above normal levels.

Russia's Agriculture Ministry cut the 2012 grain harvest forecast to 70 million-75 million tonnes last week from its previous estimate of 75 million. Russia consumes approximately 70 million tonnes per year.

For sunseeds, the price index for the new harvest rose by 500 roubles to 16,000 roubles per tonne or to $495 per tonne from $489 per tonne, according to IKAR. SovEcon pegged it at 15,850 roubles per tonne on an EXW basis.

The crude sunoil price index was unchanged at 39,000 roubles per tonne. In dollar terms it fell $23 to $1,208 per tonne. SovEcon said that domestic prices fell by 1,075 roubles to 42,175 roubles per tonne, while the FOB Black Sea export price rose to $1,220-1,230 per tonne from $1,200.

Prices for the new harvest of soybean strengthened in Russia's south region by 500 roubles to 17,500 roubles per tonne or to $542 from $537, IKAR added. Rapeseed prices were up by 800 roubles to 15,800 roubles per tonne or to $489 from $473.

($1 = 32.3237 Russian roubles)

Source: Reuters  |  #grain   |  Comments: 0   Views: 60

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