IKAR in Mass Media

Russian grain harvest delayed by wet weather

13 августа 2008 года

MOSCOW, July 7 (Reuters) - A massive Russian grain harvesting campaign in the south of the country has been delayed due to rainy weather, while prices of old crop grain kept declining last week, analysts said.

"Grain supply keep dwindling, but producers are not in a hurry to sell grain at current low prices, which they believe are not justified," SovEcon agricultural analysts said.

Old crop wheat offer prices fell by 200-300 roubles ($8.51-$12.76) per tonne, although in the south, where the harvesting had started there was not sufficient supply of old crop grain.

In the east only small deals have been registered as buyers expected a further price decline.

Rye prices declined by some 500 roubles per tonne in the Volga region and in the Urals on expectations of a good crop which is about to be harvested, SovEcon said.

"Winter barley prices have dropped from initial start-up levels below psychological level of 5,000 down to $4,700, or $200," the Institute for Agricultural Market Studies (IKAR) said.

"Winter wheat forward prices have just emerged at about $220-$225 per tonne, ex-silo."

SovEcon said exporters were offering to buy fourth-grade milling wheat at 5,800 roubles per tonne CPT Novorossiisk. But low supply forced some exporters in need to honour earlier signed contracts to raise prices to 6,000 roubles.

Bid prices for feed barley were 5,300-5,500 roubles per tonne CPT Novorossisk and 5,100-5,200 roubles CPT shallow ports, it said.

SUNSEEDS, SUNOIL FALL

Sunseed and crude sunoil prices kept declining last week, SovEcon said. But sunoil exports were sluggish as world prices fell notably.

Domestic crude oil market was bearish, prices have dropped to $1,910-1,930 per tonne, IKAR said. The export market was also bearish, the domestic FOB price had dropped to $1,850 per tonne.

The market was influenced by bearish news from Turkey, which has increased an import duty, and Argentina.

Old crop sunseed market has practically disappeared. New winter rapeseed harvesting proceeded in the south of Russia and many plants started crushing rapeseeds, IKAR said.

It said start-up rapeseed prices ranged between $470 and $550 per tonne. SovEcon said prices ranged between 10,000 and 12,500 roubles.

White sugar domestic prices have followed rising world market prices. Prices in Krasnodar rose last week to $701 per tonne from the previous week's $674.

Source: Reuters | #grain | Comments: 0 Views: 53

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