IKAR in Mass and Industry Media

Russian grain prices keep raising - analysts

Reuters

MOSCOW, Sept 27 (Reuters) - Russian grains prices rose further last week led by feed barley and maize, despite an export ban, analysts said on Monday.

Third-grade milling wheat in southern Russia rose to $182 per tonne from $175, fourth-grade to $175 from $167, and feed wheat to $172 from $165, the Institute for Agricultural Market Studies (IKAR) said in a note.

It said feed barley prices rose to $189 from $181, which is unusual as feed barley has never traded higher than milling wheat. Maize prices increased to $215 per tonne from $201 in southern Russia.

SovEcon agricultural analysts in their note said that malt producers lowered their demands as to the quality of barley and bought feed barley for malting purposes. SovEcon also said current high prices may raise imports of maize from Ukraine.

"One of the factors, which have influenced price strengthening is the recent government decision to subsidise grain shipments by rail," IKAR said.

"The benefits of 300-500 roubles ($9.68-$16.13) per tonne are mostly absorbed by sellers, not buyers of grain."

Sunseed prices rose by 525 roubles per tonne to 16,025 roubles per tonne EXW, as crushers worried about a lower than expected crop kept raising their bids, SovEcon said.

"We expect the upward trend to stay in the nearest future," it said.

Sunseeds' prices reached $512 per tonne, up from $502 last week although a major crusher suddenly lowered purchase prices and then raised them again, showing, that its purchase price limits are not unlimited, IKAR said.

Prices for crude sunoil are relatively stable at $1,190 with demand rather weak at this price level. The market was full of talk about an inevitable introduction of sunoil complex export restrictions, IKAR said.

Sunoil supply was weak and prices rose by 750 roubles per tonne to 36,750 roubles, SovEcon said.

White sugar prices in beet producing regions declined slightly to 27,800 roubles or $897 per tonne from 28,700 roubles and $897, as beet processing campaign continued, IKAR said.

06.10.10

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