Russian grain export prices show slight increase

Some Russian grain export prices edged up last week, but demand started to decline after exporters have replenished their supplies to fulfil already signed contracts, according to analysts.

 

The export price for ordinary milling wheat with 11.5% protein content rose by US$1 to US$172 per tonne FOB Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said in a weekly note.

 

It said prices at the shallow water ports of the Azov Sea and Don river were mostly unchanged, but some strengthening of prices was noticed for wheat with protein content of 13.5% it said.

 

SovEcon agricultural analysts said fourth-grade (ordinary) wheat CPT prices (including delivery to) Novorossiisk rose to RUB4,500-4,800 (US$150.6-US$160.6) per tonne from RUB4,300-4,700 a week before. "But some market players say exporters' demand is petering out, possibly after they have replenished their stocks to fulfil already signed contracts," it said.

 

Russian grain exports between the start of the crop year and April 10 were estimated at 16.46 million tonnes down from 17.81 million a year ago, IKAR said. In the first 10 days of April exports were just 430,000 tonnes, while in the whole of April last year the country exported 2.17 million tonnes.

 

Domestic grain prices were largely stable, SovEcon said.

 

Sovecon said it did not expect grain prices to rise, as it was not convinced that the global prices will show an upward trend because of high supplies, good weather for the spring sowing in the US and good state of winter grains there.

 

Soy prices were stable at US$561 per tonne. Soyoil slightly declined by US$4 to US$794 per tonne. Soymeal prices were basically unchanged at US$650 in Belgorod, IKAR said.