Wheat prices continues growing on the domestic Russian market, according to the report of the center SovEkon. The authorities inform that the possible imposition of grain export limitations is not the matter of the nearest future.

The situation on the grain market did not faces significant changes. Last week (June 13-17) the market of wheat of all grades continued strengthening. The price index of SovEkon, which reflects the average offer market price in the European part of Russia, for 3-grade milling wheat increased by 175 RUR/t to the level of 6525 RUR/t, for 4-grade milling wheat - up 225 RUR/t to 6425 RUR/t, for 5-grade feed wheat - up 200 RUR/t to 5725 RUR/t.

The slight decrease in average prices was noted on the market of barley (down 50 RUR/t to 5725 RUR/t). Agrarians will start harvesting new crop barley in the coming weeks.

Despite keeping of high uncertainty with the state regulation of exports for almost whole week, exporters are once again began to gradually increase grain purchasing prices. In the deep-water ports buyers declared the price for 4-grade milling wheat at the level of 6900-7000 RUR/t, up several hundred RUR/t compared the indices in the previous week.

At the end of the week, the authorities tried to calm some market participants. Viktor Zubkov, First Deputy Prime Minister, said that the Government is not considering any specific proposals to limit grain exports from the country - whether it be quotas or tariffs, adding, however, that if the price is too high, the "necessary decisions" would be taken. Changing the tone of statements of the authorities on the fate of grain exports (as a reminder, previously the officials expressed the desirability of imposition of the export duties) is not a bad signal for the domestic market and countries-importers of Russian grains.

Source from AgrimarketInfo