IKAR in Mass and Industry Media

Russian grain export prices stable, domestic rise

Reuters

MOSCOW, Dec 29 (Reuters) - Russian grain export prices were stable last week, while domestic prices edged up on continued government purchases and a rising dollar, analysts said on Monday.

The government has bought some 4.4 million tonnes of grain so far, having spent some 20.9 billion roubles ($720.7 million)

Most grains gained between 50 and 200 roubles, SovEcon agricultural analysts said. Maize, supported by the government intervention tenders, was one of the leaders of the race as its average offer price rose by 175 roubles per tonne.

Average wheat prices rose by 125 roubles, while milling rye and feed wheat rose by 50 roubles, SovEcon said. The Institute for Agricultural Market Studies (IKAR) said that domestic prices were fairly stable in dollar terms, but with a weaker rouble they gained in rouble terms.

Export activity was high and Russia exported 1.55 million tonnes of grain in the first 20 days of December, IKAR said.

SovEcon said competitiveness of Russian grain rose due to mounting world prices and falling rouble.

Prices, however did not change. Standard wheat was traded at $175-180 per tonne, FOB Novorossiisk, IKAR said.

SovEcon said exporters offered to buy fourth grade wheat at 4,500 roubles per tonne, CPT Novorossiisk.

Sunseed purchase prices remained almost unchanged at $220-237 per tonne in the south of Russia and at $200-210 per tonne in the Volga region, IKAR said.

SovEcon said average sunseed prices rose by some 300 roubles per tonne.

The Ukrainian parliament has refused to drop an export duty on sunseeds. The market expects the Russian government to abolish an export duty. But the cancellation of the duty is unlikely in the near term, IKAR said.

Sunseed oil export activity remains high, although forward prices have declined to $590 per tonne, FOB Novorossiisk, IKAR said. SovEcon said domestic sunseed prices added a modest 100 roubles per tonne.

White sugar reached another high point of $562 per tonne, ex-silo, Krasnodar, last week, rising from $548 a week ago, IKAR said adding that it expect a further rise on the domestic white sugar market.

29.01.09

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