Russian food grain prices kept declining in the week to October 22, while feed barley and sunseed prices kept rising, traders said.
Grain harvesting campaign is approaching its close. Farmers had collected 82.3 million tonnes of grain from 41 million hectares by October 19.
Third class milling wheat prices declined by an average of 50-100 roubles per tonne in most regions of European Russia. Traders expect slow decline to continue in the coming weeks. Fourth class milling wheat prices were stable.
Milling rye prices also eased by 50-100 roubles per tonne. But traders do not expect a steeper decline, as rye harvest is close to record lows, which makes the balance of supply and demand very tight.
Feed barley rose by 50-100 roubles. Barley supply is low, as farms prefer stockpiling it to feed domestic animals. Feed wheat prices were largely stable, although in some regions they rose by some 50 roubles. Wheat flour prices were stable. Some traders believe they have reached a seasonal low and may start rising.
Sunseed harvesting proceeds rapidly. By October 19 farmers had threshed 4.1 million tonnes of seeds from 3.6 million hectares. However, demand for sunseeds remains high pushing prices up. Sunseeds rose by an average of 300-350 roubles per tonne in the past week.
Market players expect the rise to slow after prices reach 8,500-9,000 roubles per tonne (EXW).
Supply of sunoil from new harvest seeds has increased. Small oil crushers offer it for 17,000-18,000 roubles per tonne, while large plants at 20,000-21,000 roubles. Traders say the difference is typical for the start of the crushing season.
Comments
Comments are closed.