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IKAR in Mass Media

Russian barley prices fall as harvest campaign starts

17 июня 2013 года

MOSCOW, June 17 (Reuters) - Russia's barley export prices fell last week as the start of the harvest campaign increased offers of the new crop, analysts said, adding that the first cargoes would arrive in the Black Sea port of Novorossiisk by the end of June.

Exports of barley, second in volume to wheat among Russian grains, could help increase overall grain exports this year even as the government seeks to replenish its strategic wheat reserves, which were run down after last year's drought.

Prices for Russia's new-crop barley were quoted at $248 per tonne on a free-on-board (FOB) basis in the Black Sea last week, down from $255 per tonne a week earlier, the Institute for Agricultural Market Studies (IKAR) said in a note on Monday.

SovEcon agriculture analysts quoted barley prices in a band of 7,000 to 7,500 roubles ($220-240) per tonne on a carriage paid-to (CPT) basis in the Black Sea port of Novorossiisk.

Russia last week started the winter barley harvesting campaign in its southern regions, which account for its largest grain production and cereal exports via the Black Sea.

The price index for barley in the Azov Sea declined $5 to $230 per tonne on a FOB basis, according to IKAR, while SovEcon quoted a price of 6,800 roubles ($210) per tonne or below this level on a CPT basis in shallow-water ports.

SovEcon expects ships to pick up two cargoes, each of 60,000 tonnes, from the port of Novorossiisk by the end of June. It did not name the buyer.

Israeli private buyers have in the last week purchased at least 9,000 tonnes of feed barley from the Black Sea region in deals priced between $267 and $269 a tonne c&f (cost and freight), European traders said earlier on Monday. Ukraine was said to be the most likely origin.

Russia, historically the third-largest wheat exporter in the world, was hit by a drought last year which slashed its grain crop by a quarter. The government plans to buy up to 5 million tonnes of grain this year, mainly wheat, to replenish its own stocks.

From the start of the marketing year on July 1, 2012 to the end of last week, Russia had exported more than 16 million tonnes of grain, including 10.9 million tonnes of wheat, IKAR said.

It is expected to harvest 86 million tonnes of grain this year, including 50 million tonnes of wheat and 16 million tonnes of barley, SovEcon forecasts.

Large-scale harvesting of other grains in the Southern Federal District and in the North Caucasus District is expected to start in the final 10 days of June.

As for wheat, prices for supplies with 12.5 percent protein content and on a FOB basis were down $2 at $264 per tonne in the Black Sea and down $5 at $240 per tonne in the Azov Sea last week, IKAR said.

SovEcon quoted prices for fourth-class milling wheat in a band of 7,500 to 7,800 roubles per tonne on a CPT basis in deep-water ports.

Benchmark November milling wheat on the Paris futures market was down 0.5 percent at 195.25 euros ($260) a tonne by 1201 GMT on Monday.

As for oilseeds, Russia's domestic prices for sunflower seeds were up 150 roubles at 16,300 roubles per tonne, SovEcon said. Export prices for crude sunflower oil were stable at $1,120-$1,130 a tonne FOB.

Russia's domestic white sugar prices were down 100 roubles at 23,400 roubles per tonne, according to IKAR. ($1 = 0.7496 euros) ($1 = 31.6346 Russian roubles)

Source: Reuters  |  #grain   |  Comments: 0   Views: 70

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