Russian Black Sea grain export prices fall

Russian Black Sea grain export prices fell slightly last week as shipments were disrupted by stormy weather and a strike in the port of Tuapse, while the rising rouble pushed domestic sunseed prices up to new records.
Major trading houses have accumulated substantial stocks of wheat in export-oriented regions and will ship them out quickly as the threat of higher export tariffs next year looms, Moscow-based SovEcon said in its weekly report.
Some exporters raised bid prices for fourth-grade wheat to 6,600-6,800 roubles ($269.3-$277.4) per tonne, CPT Novorossiisk, taking into account a 10 percent export tariff that became effective on November 12.
Forward wheat prices for December delivery fell slightly to $340 a tonne free on board Novorossiisk, the Institute for Agricultural Market Studies (IKAR) said. In smaller Azov Sea ports, prices rose to $315 per tonne, reducing the spread between deep and shallow-water ports to a "less abnormal" level.
"The week was marked with substantial difficulties in export off-loading activities due to stormy weather in Black Sea ports as well as a dockers' strike in the port of Tuapse," IKAR said in its weekly market commentary. "Signs of further aggravation of the feed wheat supply situation resulted in a further narrowing of the margin with domestic milling wheat."
SovEcon said most wheat producers had refrained from lowering prices and were in no rush to sell their stocks, despite a drop in demand. None are in need of urgent funding for the sowing campaign and thus can await an upturn in prices.
SUNSEED EXPORTS: SovEcon said some grain producers planned to sell more expensive sunseeds and would sit on their wheat stocks at least until spring. Some traders doubt the efficiency of these tactics, as they expect an increase in the wheat export tariff and lower world prices next year due to a forecast increase in output.
However, if export restrictions are not adopted and Russian shipments exceed 14-15 million tonnes, prices may soar again at the end of the current crop year. SovEcon said milling wheat and feed barley prices lost about 25 roubles per tonne on average, while feed maize lost 100 roubles.
Only milling rye added 50 roubles per tonne. IKAR said the forward export barley market was "practically dead" against the background of a 30 percent export duty that also became effective from November 12.
Domestic feed barley prices rose slightly to $251 a tonne ex-works Central European Russia. "Against the background of rouble appreciation, domestic sunseed prices have strengthened to further record-high levels of $607-612 ex-works," IKAR said.
SovEcon said sunseed offer prices rose by an average of 300 roubles per tonne and some sellers offered at 15,000 roubles ($612) per tonne or more. The sunoil market remained stable.