IKAR in Mass and Industry Media

Russian wheat prices stable on export expectations

Reuters

MOSCOW, May 10 (Reuters) - Rouble-denominated Russian wheat prices stopped declining last week as big traders bought the cereal anticipating an end to Russia's export ban, analysts said on Tuesday.

Russia imposed the ban from mid-August last year to July 2011 following a severe drought. International traders believe Russia may extend the ban to the end of September, but could allow some exports in July.

"They are buying because the grain is cheap," he said.

In the south of Russia, rouble-denominated wheat prices were mostly stable, as grain holders refrained from selling, hoping instead for a renewal of exports, the Institute for Agricultural Market Studies (IKAR) said in a weekly note.

But dollar-denominated prices rose as the rouble strengthened, it said.

Third-grade milling wheat rose to $198 per tonne from $193, fourth-grade to $188 from $184, feed wheat to $182 from $175, IKAR said, adding that the market activity remained very low.

At the end of a torrid year for Russia's wheat markets, however, Russian fundamentals appeared relatively benign.

European milling wheat futures were surging on Tuesday on concerns about adverse crop weather in Europe and North America. Russia's forecasting service has predicted growing conditions close to the norm this month, however.

Stocks may also be healthier than expected after a reduction in state intervention tenders, called earlier this year to cool domestic prices.

Barley prices kept falling on supply from government stocks, the analysts said. SovEcon agricultural analysts said in a separate note that average EXW third-grade wheat prices fell by 25 roubles ($0.896) to 5,650 roubles per tonne in the European part of Russia, feed wheat also fell by 25 roubles per tonne to 5,100 roubles and fourth-grade wheat added 25 roubles to 5,475 roubles.

The feed barley market was extremely illiquid, wwith prices rising to $256 per tonne from $253 in southern Russia, IKAR said.

SovEcon said that average EXW barley offer prices fell by 275 roubles to 6,175 roubles per tonne as traders expected feed barley from government stocks at 4,200 roubles per tonne.

Maize prices declined to $288 per tonne from $289 in southern Russia, IKAR said.

The oilseed market was inactive, it said. Dollar-denominated sunseed purhase prices slightly strengthened to $630 per tonne from $626 due to weakening of the dollar. Crude sunoil prices slightly strengthened to $1,444 per tonne from $1423.

SovEcon said average sunseed prices declined by 225 roubles to 17,825 roubles per tonne and sunoil by 500 roubles to 39,325 roubles per tonne.

Prices fell in the Volga region and in North Caucasus, while in the centre prices were stable, SovEcon said.

Sugar, which has been among the world's worst-performing commmodities so far this quarter, continued to decline in line with international prices to $1,001 per tonne from $1025 a week before, IKAR said

12.05.11

All viewing: 95
Discuss