IKAR in Mass and Industry Media

Russia grain prices up on tight supply, Ukraine cap

Reuters

MOSCOW, Oct 11 (Reuters) - Russian grain prices rose last week on tight local supplies and news that neighbouring Ukraine planned to cap exports for the rest of the year, analysts said on Monday.

The price of third-grade milling wheat in southern Russia rose $5 to $187 per tonne, while fourth-grade milling wheat rose by $6 to $180 per tonne, the Institute for Agricultural Market Studies (IKAR) said.

Feed barley also rose by $8 to $202 per tonne, it added.

"The price is rather nominal, as there is practically no barley available on the southern Russian market," IKAR said in a weekly note.

SovEcon analysts in their weekly note said that domestic grain and maize prices rose after news of the Ukrainian quotas hit the market.

"Restrictions on Ukrainian grain exports will probably be applied in any event, and this will support prices on the Russian market going forward," they wrote.

Ukraine's First Deputy Prime Minister Andriy Klyuev said last Thursday that his country would limit exports for the rest of the year but that it still needed time to clarify the volume of the quotas and other details.

Prices were supported further after the U.S. Agriculture Department on Friday shocked the market by cutting its corn and soybean crop estimates, boosting grain prices in Chicago.

IKAR also said Russian feed wheat prices rose by $5 to $175 per tonne and that maize prices grew by $10 to $240 per tonne.

SovEcon also said that wheat and rye prices of all classes rose by 50 roubles ($1.67) per tonne on the week.

Barley prices climbed by 300 roubles to 6,225 roubles per tonne, maize rose by 400 roubles to 7,250 roubles per tonne.

Sunseed prices rose by 400 roubles per tonne to 16,950 roubles per tonne, while crude sunoil prices rose 750 roubles per tonne to 38,000 roubles per tonne.

SovEcon expects further price increases this year.

"The main factor for the increase is strengthening prices for sunseed oil in Ukraine," SovEcon said.

18.11.10

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