November 2, 2010

 

Russian feed grain prices keep rising

 
 

Russian grain prices continued rising last week led by feed grain due to a lower crop, analysts said Monday (Nov 1).

 

The Institute for Agricultural Market Studies (IKAR) said it had lowered its forecast for this year's grain output to 59.7 million tonnes from 60 million tonnes. This is a decline from the 97 million tonnes harvested last year.

 

SovEcon agricultural analysts said that feed barley led the rise adding 300 roubles ($9.73) to 7,000 roubles per tonne EXW in the European part of Russia. Corn rose by 200 roubles to 7,700 roubles per tonne.

 

It said feed wheat and fourth-grade milling wheat rose by 175 roubles to 5,675 roubles per tonne and to 5,950 roubles per tonne, respectively. Third-grade milling wheat rose by 100 roubles to 6,225 roubles.

 

IKAR said third-grade wheat rose to US$193 per tonne from US$188 in southern Russia, fourth-grade wheat to US$188 per tonne from US$184, feed wheat to US$185 per tonne from US$180.

 

Feed barley rose by US$2 and reached an incredible US$215 per tonne, whereas corn increased by US$9 to US$252 per tonne, it said.

 

SovEcon said that the rise of corn prices may stop, as the government may buy two million tonnes of corn in Ukraine. IKAR forecasts Russia will sow 13.9-14.1 million hectares with winter grains for the 2011 harvest. This is below the acreage sown in 2008 and 2009, but is equal to the average area of 2004-2008. The state of the plantings is highly questionable, it said.

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