IKAR in Mass and Industry Media

Russia grain export prices stable, domestic edge up

Reuters

MOSCOW, June 15 (Reuters) - Russian grain export prices were almost unchanged last week as exporter activity dwindled, while processors' purchases pushed domestic prices up, analysts said on Tuesday.

New harvest ordinary milling wheat with 11.5 percent protein content and bug damage of up to 2 percent was priced close to $163 per tonne, barley at around $118-$120 per tonne, both FOB Black Sea, the Institute for Agricultural Market Studies (IKAR) said.

Trading activity was minimal as buyers were expecting a further price decline, it said in a weekly report.

"More and more big traders are stopping purchases, awaiting new crop grain," SovEcon agricultural market analysts said.

The price range for wheat in Novorossiisk including delivery (CPT) remained unchanged at 5,000 to 5,150 roubles ($158-$162.7), while some traders set prices even lower - at 4,800 roubles per tonne, SovEcon said.

It said that, in contrast to exporters, domestic processors had increased purchases, mainly of feed grain. Prices of feed wheat rose by 75 roubles to 3,150 roubles per tonne and those of feed maize by 350 roubles to 5,000 roubles per tonne.

Milling wheat prices of third- and fourth-grade rose 25 roubles to 3,950 roubles per tonne.

IKAR kept its forecast for feed barley output this year at 14.8 million tonnes, but cut its wheat output forecast to 58 million tonnes from 58.5 million tonnes.

IKAR said that dollar-denominated prices of all major oilseeds and vegetable oils declined on expectations of a record high harvest.

But SovEcon said that average sunoil offer prices rose 50 roubles to 24,175 roubles per tonne, although the analysts see no major reason for a rise.

Russian sugar prices have stopped rising, reaching 23,000 roubles per tonne, compared with 22,500 a week before. IKAR expect no new price rise before the last 10 days of June.

10.07.10

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