IKAR in Mass and Industry Media

Russian wheat prices rise on tight domestic supply

Reuters

MOSCOW, Oct 29 (Reuters) - Russia's wheat export prices rose further last week as farmers held on to the commodity in anticipation of further price growth, analysts said on Tuesday.

Wheat exports from Black Sea countries could be modest in November as Russian farmers are withholding the crop from the market and Kazakhstan needs more time to get a clear estimate of the quality of its harvest, traders said last week.

"Farmers continue to limit wheat sales, mainly milling wheat, waiting for higher prices," SovEcon agricultural analysts said in a note. Many farmers in Russia's Central region suspended selling the commodity last week, it added.

Russia's export prices for milling wheat with 11.5 percent protein content rose $7.5 to $280 per tonne on a free-on-board (FOB) basis in deepwater ports last week compared with a week earlier, according to SovEcon.

Prices for wheat with 12.5 percent protein content rose $8 to $283 a tonne last week in the Black Sea on a FOB basis, the Institute for Agricultural Market Studies (IKAR) said. In the Azov Sea prices for the same protein content rose $10 to $255.

In the absence of wheat sales, farmers chose to sell sunflower seeds to get working capital last week, according to SovEcon. It advised producers to think about suspending sales now, as prices for sunflower seeds are falling, while prices for sunflower oil are rising.

Prices for sunflower seeds fell 475 roubles to 9,700 roubles ($300) per tonne last week, it said. IKAR saw its price index down 150 roubles to 9,770 roubles.

Export prices for sunflower oil rose $20 to $900-$910 a tonne on a FOB basis in the Black Sea, SovEcon added, while IKAR quoted the export crude sunoil price as up $15 at $878 a tonne.

As for sugar, the Krasnodar price index was unchanged at 22,700 roubles per tonne, IKAR said.

($1 = 31.9180 Russian roubles)

29.10.13

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