April 29, 2008

Russia sees continuous grain prices decline

Russian grain prices have slid further last week, amid weak old-crop balances and limited sales from grain producers.

SovEcon agricultural analysts said prices are likely to keep declining ahead of the new crop year on an expected high world wheat crop and Russian grain crop, as well as increased Ukrainian exports.

The Institute for Agricultural Market Studies (IKAR) said third-grade milling wheat fell US$3 last week to US$400 per tonne in the Central Black Soil region.

SoyEcon added that expectations of some traders to sell corn at US$362.8 to US$384.1 per tonne are unlikely to happen due to pressure from Ukraine corn imports.

Recently, some Russian producers have decreased grain sales on the expectation that processors might raise buying prices.

Meanwhile, official statistics indicate that total stocks as of April 1 were 20.5 million tonnes, 5 percent down on-year.

Stocks at large and medium farms were 12.1 million tonnes, up 0.5 percent.