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IKAR in Mass Media

Russian domestic grain prices rise despite interventions start

22 октября 2012 года

MOSCOW, Oct 22 (Reuters) - Russian domestic grain prices rose last week despite expected sales from the government interventions stock, which should start on Tuesday and help cool down prices in the drought-hit country, one of the world's top wheat exporters.

"In most regions farmers closed their urgent need for cash and delayed further sales waiting for higher prices," SovEcon agricultural analysts said in a note on Monday.

The government is preparing to sell up to 110,000 tonnes of grain per week from Oct. 23 until the end of the year to stem rising domestic prices. The first tender starts on Tuesday at 0700 GMT and ends at around 1000 GMT.

Russia's average domestic EXW (ex-silo) prices for third-grade wheat rose 75 roubles to 9,825 roubles ($320) per tonne last week, while prices for fourth-grade milling wheat were up 50 roubles at 9,800 per tonnes, SovEcon said.

Prices for fifth-grade milling wheat increased 50 roubles to 9,350 roubles per tonne last week, it added.

The strongest growth was seen in Russia's Central region, where prices rose by 200-300 roubles per tonne, while prices in Siberia were stable.

Russian wheat export prices rose by about 40 percent between June and September but have fallen since early October, sliding last week to prices that are near competitive level.

The purchase price of fourth-grade milling wheat in Russian deep-water ports fell to 10,500-10,900 roubles ($340-350) per tonne last week from 10,800-11,000 roubles per tonnes on a carriage-paid-to (CPT) basis, SovEcon added.

Russian export prices are now equal or $10 per tonne higher than Paris benchmark November milling wheat, which rose on Friday to a one-week high after traders said Ukraine would ban wheat exports from mid-November, taking one of the world's leading suppliers out of the market for the rest of the season.

There were rumours that Russia could follow Ukraine and will ban grain exports this year, as it did after a drought in 2010. But Russian officials rejected such speculation, saying they would oppose any ban on grain exports.

Russia, historically the world's number three wheat exporter by volume, was hit by a drought this year, which has slashed its wheat harvest by 32 percent to 39.5 million tonnes.

Its 2012/13 exportable surplus was also decreased significantly to about 10 million tonnes of grains, of which more about 90 percent may have already been sold.

From the start of 2012/13 marketing year, which began on July 1, up to the middle of October, Russia exported 9.35 million tonnes of grain, including 7.55 million tonnes of wheat and 1.30 million tonnes of barley, Russia's Institute for Agricultural Market Studies (IKAR) said on Monday.

This figure excludes legumes, the head of IKAR Dmitry Rylko said.

Russia's maize (corn) export stood at 335,000 tonnes, which was a record level for this time of the season, it added.

For sunseeds, domestic price index has further fell to 16,400 roubles per tonne, down 300 roubles, or to $534 per tonnes from $536, IKAR said. Prices fell by 325 roubles to 16,925 roubles per tonne, according to SovEcon.

It pegged domestic prices for crude sunoil at 38,750 roubles per tonne, down 1,425 roubles, while export prices were stable at $1,110-1,130 per tonne on a free-on-board (FOB) basis.

IKAR saw sunoil prices stable in roubles terms at 37,550 roubles per tonne and up $20 in dollar terms to $1,220 per tonne.

Soybean prices in Russia's South region fell by 700 roubles to 17,300 roubles per tonne or to $563 per tonne from $578. Rapeseed prices were flat at 16,000 rouble per tonne, IKAR said.

White sugar prices in Russia's South region decreased to 21,100 roubles per tonne from 21,700 roubles or to $686 per tonne from $696, it added.

Source: Reuters  |  #grain   |  Comments: 0   Views: 36

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