Russian grain prices on the decline

Russian grain prices declined in rouble terms last week, a fact which some analysts attributed to the strengthening of the Russian currency, while others said a downward trend was forming in the market.
"Grains export prices nominated in dollars remained rather stable, while, with the rouble strengthening, we observe a further price plunge across the European Russia," said the Institute for Agricultural Market Studies (IKAR).
It said rouble-nominated third-grade wheat price in the south of Russia decreased just marginally, by 53 roubles ($2.13), down to 5,960 roubles per tonne. Fourth-grade wheat decreased by 105 roubles to 5,053 roubles, fifth-grade by 132 roubles to 4,092 roubles, IKAR said.
The dollar lost around 2 percent against the rouble last week. SovEcon agricultural analysts said both third- and fourth grade wheat lost 150 roubles, while fifth-class feed wheat only 25 roubles.
It said lower buying activity and declining bid prices could indicate the formation of a downward trend. "Sellers, who need cash for the winter grain sowing campaign and for loan repayment, started lowering prices which pushed all market down," SovEcon said.
Feed barley fell by 124 roubles to 3,832 roubles per tonne. Feed maize fell to an unusually low level of 3,250 roubles per tonne, IKAR said. SovEcon said new crop maize prices fell by 400 roubles per tonne, but the pace of the decline was expected to slow down as maize prices are now close to those of feed wheat.
BAD WEATHER: Rains in the south of Russia and part of the Central Black Soil region have caused a delay in the harvesting campaign, supporting sunseed prices, analysts said.
Bid prices increased by roughly 200 roubles and reached 9,000-9,200 per tonne including delivery to crushing plants, IKAR said. SovEcon said sunseed prices rose by 275 roubles per tonne on the average. The prices of crude sunoil decreased to 25,700 roubles per tonne. New crop soybeans in the south of Russia are offered at 14,000-15,000 per tonne, IKAR said.
After a certain rise inspired by the publication of a government decree on higher seasonal raw sugar import tariff last week, by Friday prices had fallen to 14,800 roubles per tonne from 15,000 roubles, it said. The key reason for this is the rising seasonal supply of beet sugar coupled with a relatively weak demand from regional traders.