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Most Russian grain markets, with the exception of milling rye, have shown indications of a forthcoming stabilisation due to a decline of stocks and demand from exporters, traders said. The downward trend has not yet been reversed on the sunseed and sunoil markets. Third class food wheat prices were stable in most parts of the country, easing slightly in the Volga region and in the Urals.
As a result of a rapid fall in March, third class wheat declined to levels close to those of fourth class, which provided support to the higher quality cereal.
Fourth class wheat prices were firm due to exporter demand. Wheat exports recovered by 31 percent in February from January to 357,000 tonnes. A recent acquisition by Egypt of Russian wheat proves its competitiveness on foreign markets.
If exports rise to 450,000-550,000 tonnes per month, prices may go up in regions located close to ports.
Milling rye prices kept easing. Supply of high grade rye declined. Traders offer essentially cheap rye of low milling quality.
Feed wheat and feed barley prices were generally stable, supported in particular by feed maize prices.
Sunseed prices lost some 50 roubles per tonne. Oil crushers kept lowering offer prices while warm weather in the south had worsened storage conditions at farms, forcing owners of stocks to increase supply.
Sunoil prices also declined by 50 roubles per tonne on average.

Copyright Reuters, 2005

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