Russia's wheat prices mixed, barley gains

Grain prices were mixed across Russia last week, with gridlock at leading ports acting to support prices by limiting wheat exports despite increased supplies as the harvest gathers pace, analysts said. "Market participants are talking about high occupancy rates at port terminals and a significant increase in transport queues," SovEcon agricultural analysts said in a weekly note on Monday.
Russia exported a record 2 million tonnes of grain in July after the government lifted a ban on foreign deliveries imposed last year during a catastrophic drought, SovEcon said last week. The figure included 1.8 million tonnes of wheat, the analysts said. Russia, the former world No 3 wheat exporter, produced 97 million tonnes of grain in 2009 and a bumper 108 million in 2008. Russia has raised the upper end of its forecast range for the 2011/12 season to 90 million tonnes, of which as much as 20 million could be exported, the government believes.
Agriculture Ministry data released last Wednesday showed the grain harvest reached 27 million tonnes by bunker weight, up 58 percent week on week, with wheat accounting for 21.2 million tonnes of the total. SovEcon said benchmark fourth grade wheat prices fell 300 roubles to 4,975 roubles ($180) per tonne on average, while the Institute for Agricultural Market Studies (IKAR) noted that carriage paid to (CPT) wheat prices at Black Sea port Novorossiysk rose to $221 per tonne from $220.
The barley rally continued to gain pace, with IKAR reporting prices ranging from $290-$295 per tonne, up from $275-$280 per tonne, a gain of 5.4 percent. SovEcon said CPT barley prices at Novorossiysk rose 400-500 roubles per tonne, or 7.5 percent, during the week to 6,400-6,500 roubles per tonne.
Crude sunoil prices rose to $1,395 per tonne from $1,380, though IKAR said these gains can be attributed to dollar weakness against the rouble. Rapeseed prices dipped to $561 per tonne from $571 per tonne, the institute said. "The approaching spring rapeseed harvest may continue to cool down the rapeseed prices," its analysts wrote. Soybean prices rose to $598 per tonne from $591 per tonne, with IKAR attributing the gains to higher demand in southern Russia.