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Russian wheat export prices steady, stock sales support -SovEcon

13 мая 2013 года

MOSCOW, May 13 (Reuters) - Russia's wheat export prices have been steady so far in May as expectations for the new crop to come to market soon and government sales from its stocks have offset demand from abroad, SovEcon agriculture analysts said.

Russia, historically the world's No.3 wheat exporter, was hit by a drought last year, which slashed its grain crop and quickly depleted its exportable surplus.

But its stocks, together with stocks of other Black Sea wheat producers, were enough to revive modest exports in April. Russia and Ukraine have already sold abroad 20 million tonnes of wheat this season and can export up to 1 million tonnes in May-June.

"New cargoes are expected to come for Kenya and Spain in addition to a cargo, which is being loaded with wheat for Libya, in Novorossiisk now," SovEcon said in its first market report after long national holidays.

Export prices remained flat during the last two weeks, when exporters were buying milling wheat at 9,800 roubles ($310) per tonne for delivery to the Black Sea port of Novorossiisk, it added.

SovEcon quoted prices for third-class wheat at 8,900-9,500 roubles ($280-$300) per tonne in shallow-water ports and for fourth-class wheat at 8,700-9,200 roubles per tonne.

Prices for maize (corn) rose slightly to 8,200-8,400 roubles per tonne from 8,000-8,400 roubles per tonne on a carriage paid-to (CPT) basis, it said.

Chicago Board of Trade July wheat rose 0.1 percent to $7.05 a bushel by 1030 GMT, while benchmark November milling wheat in Paris was seen at 209 euros ($270) per tonne.

NEW CROP, STOCK SALES

Russia's Southern Federal District, the country's main wheat export region which accounted for 40 percent of its wheat crop last year, usually starts the harvesting campaign in late June.

The Agriculture Ministry has set the target for the 2013 grain harvest at 95 million tonnes, up from last year's 71 million.

The Russian government has sold about 3.1 million tonnes of grain from its stocks since the start of the 2012/13 season on July 1.

It still has grain stocks of about 1.8 million tonnes and plans to cut the maximum weekly volume of sales starting on May 14 to 90,000 tonnes from the previous 130,000 tonnes.

In European Russia, the average domestic EXW (ex-silo) price for third-class milling wheat declined by 150 roubles to 9,275 roubles per tonne last week, while fourth-class wheat fell 200 roubles to 9,225 roubles per tonne.

Feed wheat fell by 150 roubles and was seen at 8,975 roubles per tonne.

Barley and feed maize prices fell by 50 roubles to 8,325 roubles per tonne and to 8,150 roubles per tonne, respectively. Milling rye was quoted at 6,900 roubles per tonne, down 100 roubles.

As for oilseeds, the domestic prices for sunflower seeds fell 150 roubles to 15,625 roubles per tonne, SovEcon said. Export prices for crude sunflower oil were flat at $1,105-1,110 a tonne on a free-on-board basis.

($1 = 31.4175 Russian roubles)
($1 = 0.7709 euros)

Source: Reuters  |  #grain   |  Comments: 0   Views: 61

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