IKAR in Mass and Industry Media

Talks start on new season Russian wheat prices

Reuters

MOSCOW, June 18 (Reuters) - New season Russian wheat prices could come in at about $255 per tonne for wheat with 11.5 percent protein content and $260 per tonne for 12.5 percent protein content in Russia's main export outlet of Novorossiisk, a top industry analyst said on Monday.

Dmitry Rylko, head of the Institute for Agricultural Market Studies (IKAR), also told Reuters that prices for wheat with 11.5 percent protein content in the shallow water ports of the Azov sea were being discussed at $210 per tonne, while wheat with 12.5 percent protein was expected to be $215 per tonne.

SovEcon agricultural analysts do not yet have information about prices for the new crop but expect Russian grain prices to continue to strengthen as supply is limited.

Last week Russian average domestic prices for third-grade milling wheat rose 175 roubles to 6,975 roubles ($210) per tonne ex-works in European Russia. Fourth-grade prices stood at 6,850 roubles per tonne ex-works last week, up 125 roubles, SovEcon said in a weekly note.

"The number of transactions was low. Consumers of grain, primarily wheat, continued to increase prices in many regions, while supply was limited. Given that fact and low market grain stocks in many regions, we expect an upward trend to continue in the short term," SovEcon added.

The new crop harvest has started earlier than usual due to the weather and market participants in the North Caucasus received the first harvest of winter barley, according to SovEcon.

Rain is likely in Russia's key southern growing areas in coming days after showers fell over the weekend, the state forecaster said on Monday. This could bring some relief to crops after dry, hot weather during the spring led forecasters to cut crop estimates for the 2012 harvest in Russia and Ukraine.

Benchmark November milling wheat in Paris edged up in thin trade by 0.75 euros or 0.37 percent to 204.50 euros ($260) a tonne. Chicago wheat and corn rose more sharply after a steeper fall than Paris wheat on Friday and with extra support from dry weather faced by corn crops in the U.S. Midwest.

For sunseeds, the domestic price index rose to 15,000 roubles ($460) per tonne last week, up 150 roubles, SovEcon said, while export crude sunoil prices were flat at $1,080-1,090 per tonne on a free-on-board basis (FOB) in the Black Sea port of Novorossiisk. ($1 = 32.5025 Russian roubles)

18.06.12

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