IKAR in Mass and Industry Media

Russian grain prices keep rising on exporter demand

Reuters

MOSCOW, May 12 (Reuters) - Russian grain prices rose last week on demand from exporters and growing concerns about crop prospects in Russia and the United States, analysts said on Tuesday.

Ordinary wheat export prices have increased to $185 per tonne and those for barley to $145 per tonne, both FOB Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said.

The upward trend is expected to stay until exporters fulfil urgent contracts, SovEcon agricultural analysts said.

A return to a steep downward trend is unlikely as world wheat market prospects are being revised due to difficult conditions affecting development of the U.S. crop, SovEcon said.

Domestic third-grade wheat prices reached $169 at the end of last week, ex-silo, Southern Russia, fourth-grade $150 per tonne, and fifth-grade $114, feed barley $101 and maize $117 per tonne, IKAR said.

The sowing campaign in southern Russia has almost finished with some minor delays. Heavy rains have raised soil moisture content, IKAR said.

But some parts of the Volga and Central Black Soil regions are exposed to drought. The sowing campaign there is lagging behind the average in the last five years.

Russian crude sunoil prices, both export and domestic, rose because of concerns about the world soybean crop, SovEcon said.

The crude sunoil export price rose to $810 per tonne, FOB Novorossiisk, domestic to $735-$740 per tonne.

Sunseed prices have not increased because of high stocks, but SovEcon said an upward trend was possible in future.

16.06.09

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