February 10, 2010

Russia grain prices drop alongside world prices

Russian grain prices dipped last week, following international prices, but a small rise was triggered in some regions due to demand from domestic producers.

Ordinary milling wheat with bug damage of 1% declined to US$175 per tonne from US$178 a week before, FOB Novorossiisk, while cereal with bug damage above 1% was US$170 per tonne, the Institute for Agricultural Market Studies (IKAR) said in a weekly note.

Exporters kept lowering prices due to pressure from international markets, SovEcon agricultural analysts said in a separate note.

Fourth-grade milling wheat prices declined to RUB4,700-RUB4,900 (US$153.8-US$160.4) per tonne CPT Novorossiisk, from RUB4,800-RUB4,900 (US$158-US$160.4).

Feed grain prices were stable due to domestic demand. Offer prices for corn were unchanged at RUB5,100 (US$167.8) per tonne, SovEcon said.

There was a rise in all types of wheat prices, especially of quality food wheat, in the Central Black Soil and Volga regions, IKAR said. Analysts said the weather at the Black and Azov sea ports had normalised, although there was traffic congestions from time to time.