IKAR in Mass and Industry Media

Russian wheat prices fall on slow demand, state sales

Reuters

MOSCOW, April 16 (Reuters) - Russian wheat prices declined last week due to slow demand in the Black Sea port of Novorossiisk and to intervention sales from Russian state inventories, analysts said on Monday.

Russian wheat with 12.5 percent protein content declined to $270 per tonne from $276 per tonne on a free-on-board basis (FOB) in Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said in a note.

SovEcon analysts wrote in a weekly market roundup that purchase prices of wheat with 11.5 percent protein content in Russian deep-water ports were stable at 7,400 to 7,600 roubles ($250-260) per tonne last week on a carriage-paid-to (CPT) basis.

In shallow-water ports. prices were also stable and were quoted at 7,000 to 7,100 roubles per tonne, it added.

"We observe very intensive physical export activities at shallow-water terminals of the Azov Sea, because of full freeing of navigation," IKAR added.

Novorossiisk, the main deep water port, will reduce grain shipments in April, because it has concluded existing wheat supply contracts to Egypt's main government wheat buyer, the General Authority for Supply Commodities (GASC), SovEcon said.

Russia has shipped its last vessel in line with GASC contracts last week, IKAR added.

The Russian government sold 427,384 tonnes of grain in its first four intervention tenders this year, data from an exchange showed last week.

The country may export between 0.5 million and 1 million tonnes of grain from state inventories, and wheat will account for over half, according to a government source, traders and analysts.

Average domestic prices for third-grade milling wheat fell 25 roubles to 6,550 roubles per tonne ex-works in European Russia. Fourth-grade prices were stable at 6,525 roubles per tonne ex-works last week, SovEcon said.

Meanwhile, Russian wheat exports reached a record volume of more than 18.5 million tonnes in the period from July to the middle of April, IKAR said last week. By the end of the 2011/12 season the country's wheat exports could reach 20.5 million tonnes, it estimates.

For sunseeds, the domestic price index rose to $394 per tonne from $390, or to 11,640 roubles per tonne from 11,490, IKAR said.

SovEcon pegged it at 11,625 roubles ($390) per tonne, up 175 roubles. Export prices in shallow-water ports of North Caucasus rose to 12,500-12,700 roubles per tonne from 12,200 roubles, it added.

Crude sunoil prices slightly strengthened to $1,125 per tonne from $1,118, or to 33,260 roubles per tonne from 32,900 per tonne, IKAR said. SovEcon recorded them at 33,775 roubles per tonne, up 275 roubles.

Domestic white sugar prices fell to $862 per tonne from $873 per tonne, or to 25,500 roubles per tonne from 25,700 roubles, due to unusual sales activities of a major trader, IKAR said.

16.04.12

All viewing: 99
Discuss