IKAR in Mass and Industry Media

Russian grain prices rise

Reuters

Most Russian grain prices rose last week on exporters' demand, and a weaker dollar, analysts said on Monday. Ordinary wheat FOB export prices made another step up to $190 per tonne, while barley demand remained quite weak and its export price held around $145, the Institute for Agricultural Market Studies (IKAR) said.

SovEcon agricultural analysts said that exporters' bid prices for fourth-grade wheat rose to 6,200 roubles ($193.3) per tonne (CPT Novorossiisk) from 5,800-5,900 roubles per tonne at the start of the week. Maize prices rose to 4,600-4,800 roubles per tonne (CPT shallow ports), it said. Domestic grain prices rose by another $3-8 per tonne on average, reflecting the weakening value of the dollar.

SovEcon said that maize offer prices rose by 175 roubles per tonne last week, feed wheat by 125 roubles, milling wheat by 100 roubles, feed barley by 50 roubles. The rise of domestic prices and a stronger rouble are cutting the advantage of Russian wheat over European or US cereal, which may make exports unprofitable shortly, it said.

Rain in the key grain-growing regions has sped up the spring grain sowing campaign practically everywhere. But in the Volga Valley it is still lagging behind, IKAR said. Russian grain exports have hit a fresh all time high of over 19 million tonnes for the season by the middle of May. They also reached another monthly high of 2.1 million tonnes in April by a preliminary estimate, it said.

Russian crude sunoil export prices went further up to $830 per tonne (FOB Novorossiisk), following Argentina's soybean oil prices, while domestic crude sunoil prices rose to $762-775, IKAR said. SovEcon said that domestic sunoil prices may rise further following export prices.

After a long period of descent due to oversupply, domestic sunseed prices started to grow and reached $280-$295, ex-silo, IKAR said. SovEcon said that some crushers had lowered bid prices. White sugar prices have gained another $14, rising to $677 per tonne in Krasnodar, mainly due to the rouble strengthening, IKAR said. With the current cost of refining white sugar estimated at $717 per tonne, IKAR expects further rise.

27.04.16

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