IKAR in Mass and Industry Media

Russia grain prices up on rouble weakness-analysts

Reuters

MOSCOW, Oct 25 (Reuters) - Russian grain prices rose last week in rouble terms, but remained largely unchanged in dollars, as the local currency weakened and demand remained firm, analysts said on Monday.

SovEcon analysts said feed barley rose 150 roubles to 6,650 roubles per tonne. The gain came amid tight global markets and the effect of a severe drought that destroyed part of the crop.

The Institute for Agricultural Market Studies (IKAR) recorded a series of modest price increases for various grades of wheat.

They said prices for third-grade hard wheat rose by 80 roubles per tonne to 5,790 roubles in southern Russia, while fourth-grade soft wheat rose by 150 roubles to 5,650 roubles.

Prime Minister Vladimir Putin said on Friday he had signed a decree to extend Russia's grain export ban until July 1 but that the country had enough grain to meet its own needs.

The Agricultural Ministry also said last week that Russia had threshed 62.3 million tonnes of grain by bunker weight, with 92 percent of the harvest complete.

IKAR said that while there was "nothing surprising" about the prolongation of the export ban given previous announcements, they noted that it did not include flour sales.

"Flour was not mentioned in the list of prohibited commodities, meaning that from Jan. 1 flour export may be resumed," the institute said.

"IKAR would count potential wheat flour export at 300-400 TMT (thousand metric tonnes) with South Caucasian, and Middle East countries as major recipients."

Maize prices also gained, with SovEcon reporting prices up 100 roubles to 7,500 roubles per tonne and IKAR reporting a gain of 210 roubles to 7,480 per tonne.

SovEcon also said that sunseed prices rose by 1,400 roubles to 19,250 roubles per tonne on average as sunoil producers continued to purchase aggressively. Many buyers told SovEcon that prices had reached 20,000 roubles per tonne.

White sugar prices remained unchanged in rouble terms at 29,200 roubles per tonne, though they declined in dollar terms to $950 from $976 per tonne.

18.11.10

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