December 10, 2009

Russia plans to stop grain interventions

The state grain interventions in Russia will stop in the nearest future as the government has insufficient money reserves for continuation of the auction.

The government involved RUB10.5 billion (US$345.2 million) for covering of the interventions, provided in two tranches. The first tranche almost became over, the government still finalises the second tranche. According to reports, the process of formation of the second tranche will take nearly two weeks.

As of December 8, since the beginning of intervention auction on November 2, the government has purchased 1.12 million tonnes of grains at the general sum of RUB4.49 billion (US$147.6 million).

To date, the fund stocks 887.8 thousand tonnes of 3-grade milling wheat at the sum of RUB3.7 billion (US$121.6 million) and 188.7 thousand tonnes of 4-grade milling wheat at the sum of RUB647.4 million (US$21.2 million).

On December 8, the government purchased 108 thousand tonnes of grains at the sum of RUB438.8 million (US$14.4 million).

The average weighted price of 3-grade wheat, purchased to the intervention fund, and totalled RUB4156.8/tonne, 4-grade wheat - RUB3575/tonne.

The National commodity exchange (Russia) plans to provide the next exchange auction within borders of the purchasing interventions on December 10, 2009.