Russian grain prices remained largely stable with little activity last week, while sunseed and sunoil prices kept rising, traders said. The spring sowing campaign progressed at a record slow pace.
According to the Agriculture Ministry's preliminary data, as of May 23, large and medium farms had sown 18.6 million hectares, 0.5 million ha less than a year ago. Last season, spring grains were sown on a record low area of 30.6 million hectares.
The delay is especially notable in the spring wheat sowing in eastern regions, primarily in the Siberian Federal District. Large and medium farms had sown just 6.8 million hectares with spring wheat by May 23, 1.8 million hectares down from the year-ago acreage.
Grain markets were largely stable with just some cereals prices down in some regions. The activity on the market declined as many market players were winding down their trade and concentrated on preparations for the new harvest.
Many traders have started offering loans to producers to be repaid with new harvest grain.
Some big traders estimate new crop third grade wheat prices at around 3,000 roubles per tonne, and fourth grade wheat price at 2,700-2,800 roubles per tonne (EXW North Caucasus).
Demand and supply for most cereals remained low, but for fourth grade wheat, which exporters seek to buy at 3,300-3,500 roubles per tonne (CPT Black Sea), and for feed wheat in demand from vodka distilleries.
Traders say that supply may rise in the nearest future, as old crop grain will be cleared from silos, where space will be needed to receive new harvest grain.
Sunseed prices kept rising slowly. Oil crushers raised prices slightly last week, while some traders, which have to honour their export contracts urgently, raised them more notably to 6,700-6,800 roubles (EXW North Caucasus).
Crude sunoil prices also rose. Many crushers raised offer prices by an average of 200 roubles per tonne, and some even to over 17,500 roubles.
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