IKAR in Mass and Industry Media

Russia grain prices rise slowly, feed leads-analysts

Reuters

MOSCOW, Oct 5 (Reuters) - Russian grain prices continued to rise slowly last week, led by feed grain, after a severe drought had destroyed part of the crop resulting in an export ban, analysts said Tuesday.

Average grain prices added less than 100 roubles ($3.29) per tonne. Maize, barley and milling rye rose by around 100 roubles to 5,925 roubles, 6,850 roubles and 5,100 roubles per tonne, respectively, SovEcon agricultural analysts said in a weekly note.

Third-grade milling wheat increased by 110 roubles to 5,560 roubles per tonne in southern Russia, fourth-grade wheat by 67 roubles to 5,325 roubles per tonne, feed wheat by 35 roubles to 5,210, the Institute for Agricultural Market Studies (IKAR) said.

The feed barley price continued to show an extraordinary performance exceeding that of milling wheat, IKAR said. Its price rose by 235 roubles in southern Russia to 5,900 roubles.

Maize prices made a huge jump of 500 roubles per tonne to 7,010 roubles, reflecting low yields and an expected low output.

IKAR said it expect maize crop this year to be 3 million tonnes, down from 3.9 million tonnes in 2009.

SovEcon expects grain prices to keep rising in the short term. However, it said, competition may start between domestic grain and imported grain, mainly feed grain from Ukraine, which may stabilise prices in central Russia.

Sunseed prices rose to 16,480 roubles per tonne from 16,280 per tonne a week before, while crude sunoil prices were rather stable at 37,000 roubles per tonne, compared with 36,900 roubles in the previous week, IKAR said.

SovEcon said average offer prices for sunseeds rose by around 500 roubles last week to 16,550 roubles per tonne EXW, as competition between crushers made them raise bid prices.

It said average sunoil price also rose by some 500 roubles to 37,250 roubles per tonne.

SovEcon expects both sunseeds and sunoil prices to keep rising following a rise in prices in neighbouring Ukraine.

White sugar prices rose to 28,500 roubles per tonne or $934 from 27,800 roubles or $897 a week before and may rise further as the cost of white sugar production from imported raws is estimated at 30,000 roubles per tonne, IKAR said.

06.10.10

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