News
29.04.2009
Russian grain shows slight recovery
Grain prices in Russia, which has exported a record of more than 17 million tonnes in the current marketing year, were stable to slightly higher in the last week, analysts said on Monday. Domestic wheat prices were around $182 per tonne, basis Krasnodar, while feed barley traded at around $142 per tonne, the Institute for Agricultural Market Studies (IKAR) said.
Moscow-based analyst group SovEcon said grain prices rose by an average 75 roubles per tonne in the last week the first overall increase in the last nine weeks as exporters returned to the market. Feed grains were most in demand, said SovEcon, while demand for fourth-grade milling wheat was stable.
"For the time being, we believe the rise in prices is a temporary deviation from the downward tendency," SovEcon said, citing high grain stocks and the seasonal need for farmers to raise money by selling grain. "An additional factor is the downtrend in world wheat prices," SovEcon said. IKAR said Russia had exported more than 17.1 million tonnes of grain this season by mid-April, eclipsing the previous record of 15.8 million tonnes shipped in the whole of 2002/03.
"We expect before the end of the season Russia may export more than 20 million tonnes of grain," IKAR said. Domestic crude sunoil prices rose to $780 per tonne, free-on-board Novorossiisk, from $730 last week, following world markets, IKAR said. "Taking into account the positive dynamic on world markets, where prices are close to $800 per tonne, we expect further growth in the domestic market," SovEcon said.
Due to high supply, domestic sunseed purchase prices fell to $270-275 per tonne, IKAR said. SovEcon said sunseed prices fell by about 250 roubles per tonne in the last week. White sugar prices were unchanged at about $612 per tonne, basis Krasnodar, IKAR said.
Reuters
