IKAR in Mass and Industry Media

Russian Wheat's 49% Surge Seen by SovEcon Discouraging Exports

Bloomberg

Dec. 3 (Bloomberg) -- Wheat prices that jumped 49 percent so far this season in Russia, the world's third-biggest shipper of the grain in the prior period, are spurring local sales and discouraging exports, according to SovEcon.

Fourth-grade milling wheat, the main variety of grain for shipment, cost 10,525 rubles ($340) a metric ton as of Nov. 30, figures from the Moscow-based researcher showed. That compared with 7,075 rubles in the week ended June 29. The current crop year began July 1.

"Record wheat prices will continue to encourage domestic sales, rather than exports," Oleg Sukhanov, a grain analyst at the Moscow-based Institute for Agricultural Market Studies, said by phone today.

Wheat exports from Russia are poised to drop to 10 million tons this season from the record 21.6 million tons shipped in 2011-12, U.S. Department of Agriculture estimates show. Dry weather in the former Soviet nation hurt crop yields this year.

Prices continued to rise in Russia even after the government began sales of stockpiled grain on Oct. 23, SovEcon figures showed. Selling totals 693,223 tons so far, out of 1.25 million tons planned for sale by the end of this month.

Government grain inventories came to about 5 million tons before the sales started, Agriculture Ministry figures showed.

03.12.12

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