IKAR in Mass and Industry Media

Russian wheat prices still stable on weak demand

Reuters

MOSCOW, May 2 (Reuters) - Russian wheat prices remained unable to reach competitive levels on world markets, despite falling during the last several weeks due to weak export demand and intervention sales from state inventories, analysts said on Wednesday.

Russian wheat with 12.5 percent protein content stood at $269 per tonne on a free-on-board basis (FOB) in the port of Novorossiisk last week, the Institute for Agricultural Market Studies (IKAR) said in a note.

"Both the supply and demand are very weak," IKAR added in a note, which was prepared on Wednesday, the first working day after public holidays in Russia.

SovEcon analysts wrote that purchase prices of wheat with 11.5 percent protein content in Russian deep-water ports showed minimal changes and declined slightly to 7,300-7,500 roubles ($250-260) per tonne from 7,400-7,600 roubles on a carriage-paid-to (CPT) basis.

As of April 20, Russia exported 23.7 million tonnes of grains (excluding legumes), of which wheat accounted for more than 19.2 million tonnes, IKAR said, adding that the domestic market was mostly turning around intervention sales from government inventories.

Russia sold 1.09 million tonnes of grain in eight state intervention tenders this year, data from an exchange showed last week, with wheat accounting for 939,550 tonnes.

Russian average domestic prices for third-grade milling wheat were stable at 6,550 roubles per tonne ex-works in European Russia. Fourth-grade prices stood at 6,525 roubles per tonne ex-works last week, SovEcon said.

U.S. wheat contract was down 0.91 percent to 6.28 cents per bushel on Wednesday at 1302 GMT.

For sunseeds, the domestic price index rose to 13,200 roubles ($450) per tonne, up 1,125 roubles, SovEcon said. Crude sunoil prices strengthened to 34,925 roubles ($1,200) per tonne, up 250 roubles, it added.

02.05.12

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