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Russian wheat prices rise faster; interventions disappoint

19 ноября 2012 года

MOSCOW, Nov 19 (Reuters) - Gains in Russian domestic wheat price began to accelerate last week as sales from government intervention stocks failed to cool down a drought-hit market, SovEcon agriculture analysts said in a note on Monday.

"Expectations of price declines due to (grain) interventions are not immediately taking shape, while many buyers have to think about building stocks for late December and early January," SovEcon said.

Russia, one of the world's key wheat exporters, is aiming to sell up to 1.25 million tonnes of grain from its 5-million-tonne stocks, after hot and dry weather slashed its harvest this year, pushing up domestic prices.

The Russian government plans to sell up to 130,000 tonnes of grain per week from Oct. 23 until the end of the year. It has already sold 441,663 tonnes of grain during the first eight tenders.

Russia's average domestic EXW (ex-silo) prices in the European part of the country for third-grade wheat rose 250 roubles to 10,250 roubles ($320) per tonne last week, which was a new record level in rouble terms. During the previous week it added 25 roubles per tonne.

Prices for fourth-grade milling wheat were 300 roubles up at 10,200 roubles per tonne, SovEcon said. Prices for fifth-grade feed wheat increased 200 roubles to 9,750 roubles per tonne this week.

Russia, historically the world's number three wheat exporter, was hit by hot and dry weather this year, which slashed its wheat harvest by a third.

The country's official exportable surplus of 10 million tonnes of grain has already been exhausted, but some shipping continues.

Russia has already exported 11.5 million tonnes of grain, including 8.6 million tonnes of wheat from the start of the 2012/13 marketing year on July 1 through Nov. 15, Russia's Institute for Agricultural Market Studies (IKAR) said on Monday.

The number of wheat buyers in Russian ports continues to decrease, because of tight supply and high prices. Russian wheat is not competitive on global market after recent decline of European benchmark January milling wheat to around 270 euro ($340) per tonne, SovEcon added.

The purchase price of fourth-grade milling wheat in Russian deep-water ports was quoted at 10,800-11,200 roubles ($340-350) per tonne last week, up from 10,800 roubles per tonne on a carriage-paid-to (CPT) basis.

As to maize (corn), prices in deep-water ports rose to 9,300 roubles ($290) per tonne last week, from 9,000-9,200 roubles per tonne.

In shallow-water ports they were also quoted at 9,300 roubles per tonne, up from 8,700-9,100 roubles per tonne, while average domestic prices rose 250 roubles to 8,500 roubles per tonne.

For sunseeds, domestic prices fell 200 roubles to 16,775 roubles per tonne, while domestic prices for crude sunoil were seen at 36,500 roubles per tonne, down 50 roubles, according to SovEcon. Export prices were quoted at $1,120-1,130 per tonne on a free-on-board basis, down from $1,140-1,150 per tonne.

($1 = 31.7765 Russian roubles)
($1 = 0.7871 euros)

Source: Reuters  |  #grain   |  Comments: 0   Views: 44

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