December 30, 2008

Russia's domestic grain prices up on state purchases

Russia's domestic grain prices have increased on continued government purchases and a rising dollar, according to analysts on Monday (Dec 29).

Most grains gained RUB50-200, said SoyEcon agricultural analysts. Corn, supported by the government's purchases, rose by RUB175 per tonne. Average wheat prices increased RUB125, while milling rye and feed wheat rose by RUB50, said SoyEcon.

The Russian government has purchased about 4.4 million tonnes of grain for RUB20.9 billion (US$711 million) so far.

Domestic prices were fairly stable in dollar terms, but a weaker ruble indicates a gain in ruble terms, said the Institute for Agricultural Market Studies (IKAR).

Russia's grain export prices, however, remained stable.

IKAR said Russia exported 1.55 million tonnes of grain in December 1-20. The competitiveness of Russian grain rose due to increasing world prices and falling ruble, said SoyEcon.

US$1 = RUB29.4010 (Dec 30)