March 17, 2009
Russia grain prices continue decline
Most Russian grain prices declined last week on low market activity caused by falling export demand and melting snow which complicates access to grain silos, analysts said Monday (Mar 16).
There are currently no factors which could stop the decline, as demand is low and government purchases are slow, said SovEcon agricultural analysts.
Last week, the government bought just 131,000 tonnes of grain compared to 205,000 tonnes a week before.
A rise in world wheat prices may be temporary, as global stocks of wheat and corn have been revised upwards which may accelerate the decline of prices in Russia, SovEcon said.
In south Russia, ex-silo third-grade wheat prices declined to US$158 per tonne, fourth-grade to US$133, and fifth-grade feed wheat to US$110, the Institute for Agricultural Market Studies (IKAR) said.
Feed barley rose slightly to US$91 per tonne, while corn remained at US$106.
SovEcon said average offer prices for fourth-grade wheat and feed barley fell by RUB125 per tonne, third-grade wheat lost RUB100 and other cereals by RUB50.
As of March 7, Russian grain exports exceeded 15 million tonnes, including 13 million tonnes of wheat, according to preliminary data, IKAR said.
US$1 = RUB34.5415 (Mar 17)
