June 24, 2008

Russia's grain prices fall on seasonal factors

Russian 2007-08 grain prices eased due to seasonal factors, yet the decline is cushioned by demand from some flour mills, analysts said.

Last week, most grains lost RUB50-150 per tonne, but feed barley lost RUB500, SovEcon agricultural analysts said.

New harvest winter barley is expected to hit the market soon and traders accelerate shipments of old crop barley to ports ahead of the expiry of export tariffs from July 1.

Exporters quote new crop grain bid prices at RUB5,700 per tonne for fourth grade milling wheat and at RUB5,500 for feed barley, SovEcon said.

SovEcon said Russian grain traders may face competition from Ukraine in global grain markets as the neighbouring country plans aggressive exports.

This may result in a price decline in the Black Sea region.

US$1 = RUB7.80 as of June 24, 2008