The rise of prices on the Russian grain market slowed down last week, but traders believe that a new rise on the world markets will provide a strong support to Russian prices. The arrival of the new crop grain has finally started affecting prices.
Prices of certain cereals have stabilised or even weakened. Average third-grade milling wheat prices rose by 75 roubles per tonne and fourth grade by 25 roubles. Export demand for milling wheat remains strong and fourth-grade wheat was bought at prices of 6,500-6,700 roubles per tonne CPT ports.
A new rise of milling wheat on the world markets was registered last week due to negative prospects of the European Union's crop. EU FOB prices rose to levels close to $300 per tonne and demand for North American wheat also rose, as well as its prices.
Russian milling wheat prices are currently in the range of $270-$280 per tonne FOB Black Sea. Traders believe the rise of world prices may give another push to Russian prices.
Some market players see the new target at the level at which 100,000 tonnes will be supplied to Jordan. Russian company Rosinteragroservis has won a tender to supply wheat at $355 per tonne CIF, which is close to $300 per tonne, FOB Black Sea. Others think that the government is becoming increasingly worried about high grain prices and may introduce export restrictions.
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