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Russian domestic wheat prices rising ahead of holidays

Reuters

MOSCOW, Dec 18 (Reuters) - Russian domestic wheat prices continue to rise thanks to demand from buyers aiming to renew stocks ahead of the upcoming holidays, SovEcon agricultural analysts said in a note on Tuesday.

One of the world's key wheat exporters, Russia was hit by hot and dry weather this year, which slashed its wheat harvest by a third and raised domestic wheat prices by about 60 percent since the spring to record levels.

Last week, average domestic EXW (ex-silo) prices in the European part of the country for third-grade and fourth-grade milling wheat rose 200 roubles and 225 roubles, respectively, to reach 10,900 roubles ($350) per tonne.

Fifth-grade feed wheat rose 225 roubles to 10,550 roubles per tonne, SovEcon said.

Since the start of 2012/13 marketing on July 1, Russia has sold 12.38 million tonnes of grain, the Agriculture ministry said in a statement, citing customs data. From Dec. 1 till Dec. 12 the country exported 419,000 tonnes of grain, including 229,000 tonnes of wheat, it added.

As to wheat export prices, demand for relatively expensive Russian wheat remained weak last week with very few buyers.

Fourth-grade milling wheat purchase prices in Russian deep-water ports were flat at 11,300 roubles ($360) per tonne on a carriage-paid-to (CPT) basis last week, according to SovEcon.

In Paris January milling wheat was 3.25 euros up at 261.00 euros ($340) a tonne on Tuesday by 0852 GMT.

In Russian shallow-water ports it was seen at around 10,500-10,700 roubles per tonne on CPT, up from 10,500 roubles per tonne last week.

As for maize (corn), purchasing prices in deep-water ports were seen flat at 9,400 roubles per tonne and at 9,100 roubles per tonne in shallow-water ports.

Milling rye added 200 roubles to reach 7,950 roubles per tonne, SovEcon said.

Domestic prices for sunseeds rose 100 roubles to 16,925 roubles per tonne, it added. Export prices for crude sunoil were flat at $1,160 per tonne on a free-on-board basis last week.

18.12.12

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