IKAR in Mass and Industry Media

Russian domestic grain price decline slows down

Reuters

MOSCOW, March 30 (Reuters) - A decline of Russian domestic grain prices slowed down last week, while export prices rose, analysts said on Monday.

Forward export prices moved up to $175 per tonne of ordinary food wheat and to $145 per tonne of feed barley, FOB Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said.

No changes were registered on the internal market after a long price decline and exports which have fallen mainly due to unfavourable weather at Black Sea ports and railway traffic congestion, it said.

SovEcon agricultural analysts said the domestic grain price decline had slowed down and in some regions prices were stable on government intervention purchases and an increase of exporters' activity.

Some exporters have raised bid prices for fourth-grade (ordinary) feed wheat by 100-200 roubles ($2.99-$5.99) per tonne to 5,400-5,700 roubles per tonne CPT Novorossiisk.

The rise was most likely related to U.S. and European prices remaining at relatively high levels of $190 per tonne and to a strengthening of the rouble, SovEcon said.

Average grains prices declined by 50-100 roubles in most regions except the North Caucasus, where offer prices for most grains except for third-grade wheat remained stable.

SocEcon said that if U.S. and European prices remain at current levels and the rouble remains stable, prices may rise slightly in the region.

But it said the downward trend may stay, although intensive government purchases may cushion a decline when a massive seasonal sale of stocks begin.

Russia exported almost 16 million tonnes of grain since the start of the current 2008/09 crop year to March 23, IKAR said.

It said Russian crude sunoil prices have jumped by $30 to $680 per tonnne following Argentine soybean oil prices while sunseed priced declined to $282-$305 per tonne.

SovEcon said average sunseed offer prices lost 25 roubles per tonne and sunoil 575 roubles per tonne.

Russian sugar prices fell after Russia said last week that it will lift its seasonal raw sugar import duty from May 1, one month earlier than planned and increase the basic rate of the tariff to $165 per tonne from $140, IKAR said.

It said white sugar ended the week at $648 compared to $670 a week before.

08.05.09

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