IKAR in Mass and Industry Media

Russian feed grain rises on shortage-analysts

Reuters

MOSCOW, Sept 6 (Reuters) - Russian feed grain prices rose last week due to expectations of a shortage as a severe drought cut the crop, while milling grain prices varied according to region, analysts said on Monday.

Feed wheat rose by 50 roubles ($1.72) per tonne on the average in European Russia, feed barley by 175 roubles to 5,500 roubles per tonne and new crop maize by 250 roubles to 6,000 roubles per tonne, SovEcon agricultural analysts said in a note.

Third-grade milling wheat lost 25 roubles, declining to 5,750 roubles per tonne and fourth-grade wheat fell by 50 roubles to 5,475 toubles per tonne. In western Siberia milling wheat rose by 125 roubles to 5,400 roubles per tonne, it said.

"Local producers are switching to the domestic market from the export market (following an export ban), SovEcon said. The analysts believe that the ban is unlikely to be lifted until after the middle of next year. Wheat prices in the south of Russia slightly strengthened last week by some $4 from the previous week to $179 per tonne for third-grade milling wheat and by $5 to $167 for fourth-grade, the Institute for Agricultural Market Studies (IKAR) said in a separate note.

It said feed wheat rose by $6 to $162 per tonne.

"One of the main reasons for the increase is that farmers concentrate on more profitable sunseed marketing and postpone wheat sales, which affects availability," IKAR said.

"However, the rise is rather nominal as trade volumes remain low."

Feed barley rose further by $5 to $169 per tonne outrunning the fourth-grade wheat, which is rather unusual. New crop maize is traded at $180-$184 per tonne, IKAR said.

The full-scale harvesting campaign in Western Siberia is expected to start next week. The grain crop in the far eastern part of Russia is expected to be lower than last year because of unfavourable weather conditions.

Currently, IKAR estimates total country's grain output at between 58 million and 61 million tonnes, including 42 million tonnes of wheat, it said.

SUNSEEDS, SUNOIL ON THE RISE

Sunseed purchase prices continued to rise because of an expected decline in the sunseed crop to 16,000 roubles per tonne from 15,500 roubles Crude sunoil price rose to 37,500 roubles per tonne from 35,000 roubles, IKAR said.

"Crushers after a short pause have restarted purchases of new crop sunseeds," SovEcon said.

Soybeans are offered at 13,500-15,000 roubles per tonne.

15.09.10

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