April 22, 2008

Russia's grain prices weaker on increased stocks

Grain prices in Russia dropped last week as domestic stocks expanded, a report that signals downward trend, analysts said.

SovEcon agricultural analysts said that the downward trend was more apparent last week, although the decline was rather slow.

The analysts based its reports on the volumes of carry-over grain stocks.

As of January 1, stocks dropped to a historic low of 29.9 million tonnes. However, exports were significantly decreased, ensuring that the grain volume stays in Russia.

SoyEcon said that Russia's supply of 29 million tonnes in January-June was the highest in the last five years.

Meanwhile, the Institute for Agricultural Market Studies (IKAR) said the domestic wheat prices also declined.

Third-grade wheat lost US$3, declining to US$402 per tonne in the Central Black Soil region, fourth-grade wheat fell by US$5 to US$376 per tonne, while feed wheat rose slightly to US$368 due to substantial purchases in the central Tambov region.