December 22, 2009


Russia grain export prices fall; domestic prices increase



Grain shipments were disrupted by weather last week, causing a decline in Russian grain export prices but domestic feed grain prices rose in some regions located farther from ports.


Bad weather in the south of Russia has halted export activities at the Azov Sea ports and caused substantial delays of exports from the Black Sea ports, the Institute for Agricultural Market Studies (IKAR) said.


It said the price of ordinary milling wheat with bug damage of 1% declined to an estimated US$192 per tonne from US$194. The same cereal with bug damage of 1.5% declined to an estimated US$185 per tonne from US$187 per tonne a week before.


Feed barley remained unchanged at US$130 per tonne and corn at US$175 at Azov sea ports, IKAR said.


SovEcon agricultural analysts said that some exporters had suspended purchases and some lowered purchase prices.


It said fourth-grade wheat prices declined to RUB4,900-RUB5,100 (US$160.3-US$166.9) per tonne including delivery to Novorossiisk (CPT).


SovEcon said domestic prices have risen in some regions other than those closer to ports, like the Central Black Soil region.


Average feed corn prices rose by RUB175 (US$5.73) last week to RUB4,650 (US$152.3) per tonne and feed barley by RUB75 (US$2.4) to RUB2,375 (US$77.8) per tonne. Fourth-grade milling wheat also rose by RUB75 to RUB4,050 (US$132.6) per tonne.


Traders have started seeking barley deeper into European Russia as its exportable resources in the south of the country have been practically exhausted, IKAR said.


IKAR estimated Russian grain exports from July to mid December at 10.7 million tonnes, down from 11.2 million tonnes in the same period a year ago.


Soy prices in the south of Russia have also risen to US$509 per tonne from US$490 a week before, while soy oil prices have increased to US$805 per tonne from US$784, IKAR said.

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