Russian wheat prices, unlike in previous weeks, has strengthened in the south and was largely unchanged in other parts of European Russia, traders said.
The main bullish factor last week was exporters' demand. Certain large exporters were reported to have urgent contracts for fourth and fifth grade wheat.
At the same time, supply in export-oriented southern regions is rather low, as many holders of grain stocks do not feel any funding shortage and refrain from selling grain, awaiting higher prices.
This has pushed fourth grade and feed wheat prices up by 100-150 roubles per tonne in the Southern Federal District. Demand for these cereals rose also in the Central Black Earth region and trades expect prices to go up there shortly.
SovEcon does not believe that an upward trend is being formed on the market, as it appears that a short period of rise may come to an end after urgent export contracts are fulfilled.
After this a seasonal downward trend may set in. Exporters' bid prices for fourth grade wheat rose to 4,700-4,950 roubles per tonne (CPT Black Sea Ports) and some traders say exporters are ready to pay more.
Feed wheat bid prices were in the range 4,500-4,750 roubles per tonne. Activity on other cereals markets was low last week with low demand and supply for feed barley and milling rye, while maize prices declined slightly.
Sunseed market kept rising propelled by a constant increase in crushers' bid prices which reached the range of 7,200-7,500 roubles per tonne and in some cases 7,700 (CPT refinery). Crude sunoil added more than 200 roubles per tonne on the average.
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