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Russian Feed-Barley Price Jumped 4.6% Last Week

Bloomberg, 16.12.10


Dec. 6 (Bloomberg) -- Russian feed-barley prices jumped 4.6 percent to 7,975 rubles ($255) a metric ton last week, leading gains among grains in the domestic market, as shortages in the country’s drought-damaged regions worsened, Moscow-based researcher SovEcon said.

Third- and fourth-grade milling wheat each gained 150 rubles, to 6,925 rubles and 6,550 rubles respectively, SovEcon said on its website. Milling rye rose 2.9 percent to 6,200 rubles a ton, it reported.

Russia may be forced to hasten grain imports and sales from state stockpiles to ease “tight” supply in drought-hit regions, SovEcon said last week. The country, which lost 38 percent of its grain crop in this year’s drought and banned exports through July 1, is facing difficulties delivering surplus grain from seven regions in the south and Siberia to the areas damaged by drought, SovEcon said.

“Grain imports won’t start before February, as the market will freeze until mid-January because of holidays,” Oleg Sukhanov, an analyst at the Moscow-based Institute for Agriculture Market Studies, said by phone. Sales from government stockpiles won’t help cool rising prices because lack of infrastructure prevents grain being delivered to the regions that need it, Sukhanov said.

The price of feed barley rose 1.1 percent to 8,425 rubles a ton in central Russia last week, while malting barley gained 1.2 percent to 10,420 rubles a ton, Sukhanov said. Rye rose 3.3 percent to 6,825 rubles a ton, according to the institute, also known as IKAR.

Third-grade milling wheat rose 2.5 percent to 7,105 rubles a ton, and fourth-grade wheat rose 2.1 percent to 7,065 rubles a ton, Sukhanov said. Feed-quality wheat rose 1.7 percent to 6,860 rubles a ton, he said.



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