September 7, 2010
Â
Russia's feed grain cost rises on shortage
While Russian milling grain prices varied according to region, all feed grain prices rose last week amid shortage speculations as a severe drought cut the crop, analysts said Monday (Sept 6).
Â
According to SovEcon agricultural analysts, feed wheat rose by 50 roubles (US$1.72) per tonne on the average in European Russia, feed barley by 175 roubles (US$5.70) to 5,500 roubles (US$179.4) per tonne and new crop corn by 250 roubles (US$) to 6,000 roubles (US$195.54) per tonne.
Â
Third-grade milling wheat lost 25 roubles (US$0.81), declining to 5,750 roubles (US$187.39) per tonne and fourth-grade wheat fell by 50 roubles (US$1.63) to 5,475 roubles (US$178.43) per tonne. In western Siberia milling wheat rose by 125 roubles (US$4.07) to 5,400 roubles (US$175.99) per tonne, it said.
Â
"Local producers are switching to the domestic market from the export market (following an export ban). However, the rise is rather nominal as trade volumes remain low," SovEcon said. The analysts believe that the ban is unlikely to be lifted until after the middle of next year. Wheat prices in the south of Russia slightly strengthened last week by some US$4 from the previous week to US$179 per tonne for third-grade milling wheat and by US$5 to US$167 for fourth-grade, the Institute for Agricultural Market Studies (IKAR) said in a separate note.
Â
Feed wheat rose by US$6 to US$162 per tonne whereas feed barley rose further by US$5 to US$169 per tonne outrunning the fourth-grade wheat, which is rather unusual. New crop corn is traded at US$180-$184 per tonne.
Â
The full-scale harvesting campaign in Western Siberia is expected to start next week. The grain crop in the far eastern part of Russia is expected to be lower than last year because of unfavourable weather conditions.
Â
Currently, the estimate of the country's total grain output is at around 58-61million tonnes, including 42 million tonnes of wheat.
Â
Soy is offered at 13,500-15,000 roubles (US$440.05-$488.86) per tonne.
