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IKAR in Mass Media

Russia may return to Black Sea wheat market after price fall

15 апреля 2013 года

MOSCOW, April 15 (Reuters) - Russia is likely to return to exporting wheat via the Black Sea market in the coming weeks after weaker domestic demand brought prices in line with those of international competitors, the Institute for Agricultural Market Studies (IKAR) said on Monday.

Russia was hit by a drought last year that slashed its grain crop by a quarter and quickly depleted the exportable surplus. But wheat prices have been falling since early February, helped by sales from government grain stocks.

"Russia may be back on the Black Sea wheat export market in late April-May, although the volume will be not too high," the head of IKAR, Dmitry Rylko, said in a note.

"We are aware that some companies plan to resume shipments from the Black Sea terminals," he said. Russia officially forecasts grain exports of 14.8 million tonnes in 2012/13, down from 27 million tonnes a season earlier.

The price of wheat with 12.5 percent protein content is estimated at $295-300 per tonne on a free-on-board (FOB) basis in deep-water ports of the Black sea, according to IKAR.

The Agriculture Ministry said on Monday it was looking at a proposal to cut back on intervention sales, citing the decline in price.

"Prices fell due to intervention sales on the Russian grain market. As a result ... there is a proposal to reduce the amount offered for grain sales," Deputy Agriculture Minister Ilya Shestakov was quoted as saying on the ministry's website www.mcx.ru.

U.S. wheat prices slid about 1 percent on Monday, giving up some of the previous session's strong gains. Chicago Board of Trade May wheat fell 1.33 percent to $7.05-1/4 a bushel by 1031 GMT.

During the last week Russia exported some wheat with 12.5 percent protein content at $287-288 per tonne on an FOB basis from the shallow-water ports of the Azov and Caspian Seas, up $5 from the previous week, IKAR said.

Prices for new crop milling wheat are currently quoted at $270-280 per tonne on an FOB basis in deep-water ports, down from $310 per tonne for the old crop, SovEcon agriculture analysts said in a note.

Maize (corn) prices fell slightly to $260 per tonne FOB basis in the Azov Sea, IKAR said. SovEcon pegged inland domestic prices at 8,200-8,500 roubles per tonne, down 100 roubles.

Russia has sold about 2.76 million tonnes of grain from its stocks since the start of the 2012/13 season on July 1. It previously planned to sell an additional 1.7 million tonnes by the end of the season, slashing its stocks to about 300,000 tonnes.

In European Russia, the average domestic EXW (ex-silo) price for third-class and fourth-class milling wheat declined by 325 roubles to 9,825 roubles per tonne last week, SovEcon added in a note. Feed wheat lost 275 roubles and was seen at 9,550 roubles per tonne.

Feed barley prices fell by 100 roubles to 8,350 roubles per tonne, while maize prices were down 25 roubles at 8,475 roubles per tonne, according to SovEcon. Milling rye was quoted at 7,500 roubles per tonne, down 100 roubles.

As for oilseeds, domestic prices for sunflower seeds were down 125 roubles at 15,775 roubles per tonne, SovEcon said. IKAR pegged it at 15,970 roubles per tonne, down 75 roubles.

Export prices for crude sunflower oil were stable at $1,110 a tonne on a free-on-board basis, SovEcon added, while IKAR quoted domestic crude sunoil prices at 33,770 roubles per tonne, up 80 roubles.

Russia's domestic sugar prices rose by 1,300 roubles to 24,600 roubles per tonne or to $797 per tonne, up $62, IKAR said.

Source: Reuters  |  #grain   |  Comments: 0   Views: 68

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