Russian grain prices weakened in the past week due to low demand and high supply, traders said. Only feed barley prices were stable. Market participants do not see any indications that the decline might be reversed. On the contrary, more pressure on prices is expected when producers increase sales of their stocks to secure funding for the spring sowing campaign. An additional factor, which has a negative effect on prices is the good state of the winter grains. It is estimated to be close to last year's and much better than the average in the few previous years.
The good state of winter grains is an indicator of high harvest, and it also cuts the demand for seeds thus increasing the producers' stocks.
Third class food wheat declined by an average of 100 roubles per tonne. Fourth class wheat eased by nearly the same amount, despite higher demand from exporters.
Miling rye declined by 50-75 roubles per tonne.
Feed wheat eased by just 50 roubles supported by stable demand from distilleries.
Strong exporters' demand kept feed barley prices stable.
Falling wheat prices pushed wheat flour prices down by an average of 200 roubles per tonne.
Sunseed prices were slightly down, while sunoil prices were stable.
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