Concern over
poor harvest yields pushed wheat prices higher in Russia's eastern regions last
week, adding to speculation the government may be forced to sell a part of its
stock, analysts said on Monday. Russia is ready to sell some grain via state
interventions, agriculture minister Nikolai Fyodorov said last week but did not
specify when the intervention could take place.
From April to June Russia sold about 2 million tonnes of grain in state interventions and still has about 5 million tonnes in its stock. Wheat prices rose in Siberia, Urals and Volga regions despite stable prices in key export South regions thanks to strong demand from local clients and buyers from other regions, the SovEcon consultancy said in a note.
"A significant shortage of crop becomes more evident in Volga region, which is harvesting the new crop now," SovEcon said. "Urals and Siberia will start to harvest later, but it is difficult to expect a high crop there." Russia's southern breadbasket regions saw persistent rains after spring drought but weather remained dry in Siberia and Volga region, raising fears of possible disruptions in the country's grain export.
The pace of Russia's grain exports in 2012/13 season still lags the previous year. In the first three weeks of July, Russia exported 1.13 million tonnes of grains, including 975,000 tonnes of wheat, Dmitry Rylko, head of the Institute for Agricultural Market Studies (IKAR), said in a note. Russia exported 1.66 million tonnes of grains and 1.30 million tonnes of wheat in the first three weeks of July last year. Wheat with 12.5 percent protein content was stable at $310 per tonne in Russia's main deep-water ports last week, IKAR added. Barley feed prices in deep-water ports fell $5 to $295 per tonne last week. SovEcon saw prices for fourth grade milling wheat in deep-water ports stable last week at 9,200 roubles-9,400 roubles ($290) per tonne on a carriage-paid-to (CPT) basis.
Russia's wheat prices in shallow-water ports increased to 8,700-8,800 roubles per tonne last week from 8,500-8,600 roubles, SovEcon said. European milling wheat futures rose sharply in opening trade on Monday, tracking Chicago grain prices, as weather forecasts and crop surveys raised fears of more damage to US crops. Benchmark November milling wheat was up 7.50 euros or 2.91 percent at 265.25 euros a tonne by 0852 GMT, after rising as high as 265.75 euros in opening deals.
From April to June Russia sold about 2 million tonnes of grain in state interventions and still has about 5 million tonnes in its stock. Wheat prices rose in Siberia, Urals and Volga regions despite stable prices in key export South regions thanks to strong demand from local clients and buyers from other regions, the SovEcon consultancy said in a note.
"A significant shortage of crop becomes more evident in Volga region, which is harvesting the new crop now," SovEcon said. "Urals and Siberia will start to harvest later, but it is difficult to expect a high crop there." Russia's southern breadbasket regions saw persistent rains after spring drought but weather remained dry in Siberia and Volga region, raising fears of possible disruptions in the country's grain export.
The pace of Russia's grain exports in 2012/13 season still lags the previous year. In the first three weeks of July, Russia exported 1.13 million tonnes of grains, including 975,000 tonnes of wheat, Dmitry Rylko, head of the Institute for Agricultural Market Studies (IKAR), said in a note. Russia exported 1.66 million tonnes of grains and 1.30 million tonnes of wheat in the first three weeks of July last year. Wheat with 12.5 percent protein content was stable at $310 per tonne in Russia's main deep-water ports last week, IKAR added. Barley feed prices in deep-water ports fell $5 to $295 per tonne last week. SovEcon saw prices for fourth grade milling wheat in deep-water ports stable last week at 9,200 roubles-9,400 roubles ($290) per tonne on a carriage-paid-to (CPT) basis.
Russia's wheat prices in shallow-water ports increased to 8,700-8,800 roubles per tonne last week from 8,500-8,600 roubles, SovEcon said. European milling wheat futures rose sharply in opening trade on Monday, tracking Chicago grain prices, as weather forecasts and crop surveys raised fears of more damage to US crops. Benchmark November milling wheat was up 7.50 euros or 2.91 percent at 265.25 euros a tonne by 0852 GMT, after rising as high as 265.75 euros in opening deals.
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