IKAR in Mass and Industry Media

Russian grain prices keep falling on state sales

Reuters

MOSCOW, April 25 (Reuters) - Russian grain prices continued to decline last week, although at a slower rate than the week before, as the government started selling its intervention stocks, analysts said on Monday.

The state grain trader, United Grain Co, is actively signing agreements with regions hit by last year's drought to sell some 1.4 million tonnes of grain at a low fixed price, the company's web site www.oaoozk.com said.

Third-grade milling wheat price declined to $185 per tonne from $190 in southern Russia, fourth-grade to $174 from $176 and feed wheat to $167 from $169, the Institute for Agricultural Market Studies said in a weekly note.

It said feed barley price was unchanged at $249 per tonne, while maze remained at $277 per tonne.

SovEcon agricultural analysts said in their note that in the European Russia average barley EXW offer prices declined by 350 roubles ($11.70) per tonne to 7,050 roubles per tonne. It fell by 450 roubles per tonne in the previous week. SovEcon believes that UGC will have difficulties in selling all the grain in accordance with government orders. "On the falling market, grain, mainly feed wheat, becomes less attractive," it said. "We may expect therefore that not all signed contracts will be fulfilled."

Sunseed prices increased slightly in dollar terms to $641 per tonne from $638, although they declined in roubles. Sunoil rose to $1,401 per tonne from $1,398 but was unchanged in rouble terms, IKAR said, adding there was little trade last week.

White sugar fell last week to 27,800 per tonne from 28,200 then rose 28,000 as seasonal demand from end-users rose. In dollar terms prices rose slightly to $1,002 per tonne from $1,000 in Krasnodar, IKAR said.

11.05.11

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