IKAR in Mass and Industry Media

Russian wheat edges up on Egypt tender-analysts

Reuters

MOSCOW, Nov 16 (Reuters) - Russian ordinary milling wheat forward export prices have nominally risen by $2 to $191 per tonne in Novorossiisk, the Institute for Agricultural Studies (IKAR) said in a weekly note.

An Eyptian purchase supported the market. Cairo bought 295,000 tonnes of Russian wheat at its latest tender at $191.37 per tonne FOB, up $1.87 from the previous tender.

"But one should note that such a price is paid for grain with up to one percent bug damage," IKAR said. "At the same time, grain with the same protein content but with higher bug damage is sold at very big discounts, which reach $10-15 per tonne."

Barley prices were stable at $130-135 per tonne in Novorossiisk, although exporters noted reduced supply from southern Russia, caused by record high early season exports in combination with rather limited production.

By the end of October, 2009/10 grain exports were 8.160 million tonnes, including 6.855 million tonnes of wheat, compared to 8.633 million and 7.750 million a year ago, respectively, IKAR said.

October grain exports were 2.267 million tonnes in comparison with 2.481 million in October 2008. Maize exports had started, but volumes were much lower than a year ago, IKAR said.

SovEcon agricultural analysts said in a note that domestic feed wheat prices rose, while third and fourth-grade wheat lost some 50 roubles ($1.73) per tonne in the European part of Russia.

Exporters' prices for fourth-grade wheat declined to 4,800-4,900 roubles per tonne including delivery to (CPT) Novorossiisk, it said.

Russian grain intervention tenders accelerated last week and purchase prices became more attractive to sellers, but their overall support was limited, SovEcon said.

The interventions have not influenced domestic market prices because of relatively low purchase volumes and high competition between grain producers and their agents, IKAR said.

"Paradoxically, in the south of Russia, the start of the interventions has even caused some price decline: local producers apparently lost last hope and switched back to the market, which caused an oversupply of grains," it said.

IKAR said third-, fourth- and fifth-grade wheat prices declined by $2, $1 and $2 respectively, to $151 per tonne, $139 per tonne and $118 per tonne, ex-silo, southern Russia.

Feed barley prices rose by $4 to $94 per tonne due to scarce supply.

SovEcon said that in the near future prices will stay relatively stable or decline due to high world grain supply.

SUNSEEDS, SUNOIL PRICES RISE SLOWLY

Russian crude sunseed oil and sunseeds prices rose to $833 and $330 per tonne in comparison with $805 and $315 a week before, following international prices, IKAR said.

The rise was rather slow, SovEcon said. "Some crushers have raised prices (for sunseeds), others lowered. Oil price growth potential is very close to zero," it said.

Sunoil exports reached 34,000 tonnes in September-October, down from 78,000 tonnes in the record high previous season, IKAR said.

It said soybean prices in the south of Russia declined to $415 in comparison with $445 last week, due to the growing pressure of the soybean supply from the Russian far east. Soybean oil price remained unchanged at $685 per tonne.

Rapeseed oil and rapeseed prices have not changed from $840 and $290 per tonne, IKAR said.

White sugar prices declined to $827 per tonne from $837 a week before ex-factory in Krasnodar, or to 23.7 roubles from 24.4 per kg on oversaturated market, it said.

18.11.09

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