IKAR in Mass and Industry Media

Russian export prices stable as trade slows down

Reuters

MOSCOW, May 24 (Reuters) - Russian grain export FOB prices were largely unchanged last week as weather favourable for crop development in regions close to Black Sea ports prompted traders to refrain from signing new contracts, analysts said.

"It looks like exporters' purchases which were previously heating the market are becoming less active," SovEcon agricultural analysts said in a weekly note.

The Institute for Agricultural Market Studies (IKAR) analysts said in their weekly note prices for old crop wheat with 11.5 percent protein content were $174 per tonne and for new crop wheat were $171 per tonne, FOB Black Sea.

SovEcon said that exporters had raised bid prices for fourth-grade wheat in Novorossiisk (CPT - including delivery) to 4,950-5,100 roubles ($158.8 -$163.6) per tonne.

"But some big buyers are cutting purchases and are speculating about a forthcoming price decline," it said.

SovEcon said average offer prices for third and fourth-grade wheat rose in the European part of Russia last week by 75 roubles to 3,825 roubles per tonne and feed wheat by 25 roubles to 3,000 roubles, while other cereal prices remained stable.

Last week, FOB export prices for crude sunoil declined to $815 per tonne from $825, while import demand was minimal, IKAR said.

It said domestic sunseed rouble-denominated prices stabilised while prices in dollars declined sharply due to the dollar strengthening.

SovEcon said domestic offer prices for sunseeds fell by 100 roubles to 11,000 roubles per tonne, while sunoil prices declined by 250 roubles to 24,250 roubles per tonne in the European part of Russia.

The sunseed planting campaign is proceeding at near record speed. By May 19, sunseeds had been sown on 4.72 million hectares, up from 2.28 million hectares a year ago, IKAR said.

It said sugar prices declined to an average of $667 per tonne from $702 a week before due to rising imports, which followed a decline in the import duty.

04.06.10

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