November 15, 2011

 

Russian grain prices show mixed movements
 

 

Analysts said on Monday (Nov 14) that Russian grain prices have mixed movements, decreasing slightly in the absence of significant market moving factors.

 

Average EXW prices for third-grade milling wheat declined by RUB25 (US$0.82) per tonne to RUB5,800 (US$189.72) per tonne in the EU part of Russia and lower quality fourth-grade wheat was unchanged at RUB5,625 (US$184.03) per tonne, while feed wheat rose by RUB75 (US$2.45) to RUB5,175 (US$169.27), SovEcon agricultural analysts said in a note.

 

Barley prices remained stable, while corn prices declined by RUB300 (US$9.81) per tonne to RUB5,300 (US$173.36).

 

In the North Caucasus wheat prices were largely unchanged or slightly lower due to weak export demand. In Siberia and the Urals prices declined while in the regions along the Volga River prices were stable, SovEcon said.

 

It said wheat prices, primarily those of feed wheat, became stronger in the Central Black Soil area, which may be the result of domestic consumers building up stocks for the end of December and January, when market activity is low.

 

Another possible explanation may be that consumers decided to raise prices in order to stimulate domestic shipments, SovEcon said.

 

Deputy Transport Minister Andrei Nedosekov told a government committee meeting on Monday that massive grain exports started hitting domestic animal feed producers, who are complaining about supply shortages.

 

"We found out that there have been no orders for shipments (of grain) to mixed feed plants as shippers prefer to export grain as fast as possible," Nedosekov said.

 

Last week the government said that Russian exports were proceeding at a record pace and that a total of 13.3 million tonnes have been exported so far.

 

Recent outbreaks of African swine fever may lift prices especially in regions, which traditionally import feed grain from the affected areas if they decide to impose restrictions, SovEcon said.

 

It said traders also reported that Ukrainian authorities had stopped grain shipments from the Kursk region, apparently for fear of the disease spreading.

 

It said traders kept CPT prices for fourth-grade wheat stable at RUB7,000-7,200 (US$229.04-235.58) per tonne at deep sea ports.

 

The Institute for Agricultural Market Studies (IKAR) said FOB prices in Novorossiisk for standard wheat with 11.5% protein content declined slightly to US$242 per tonne from US$244 a week before, while at shallow water ports they declined to US$203 per tonne from US$205.

 

But FOB prices for January delivery were reaching US$250 per tonne, IKAR said.

 

Rouble denominated sunseed prices declined by RUB100-9,200 (US$3.27-330.94) per tonne, while sunoil prices declined by RUB425-33,500 (US$13.90-1,095.85) per tonne, SovEcon said.

 

In dollars, sunseeds rose to US$285 per tonne from US$280, IKAR said.

 

"The main driving force of the price strengthening was the situation in the Volga Valley, where prices reached their bottom and buyers intensified purchases," IKAR said.

 

Crude sunoil prices were little changed at US$1,076 per tonne compared to US$1,082 per tonne.