A rise in Russian grain prices has mostly slowed and in some regions prices even declined after the government announced its plans for grain distribution and intervention sales, analysts said on Monday. Russia's Prime Minister Vladimir Putin has signed an order allowing the sale of up to 500,000 tonnes of food and feed grain from government stocks per month in the first half of 2011.
Rye prices have increased by 200 roubles ($6.72) per tonne last week to 7,550 roubles per tonne EXW European Russia, SovEcon agricultural analysts said in a weekly note. Feed barley and maize rose by 100 roubles to 8,750 and 8,600 roubles per tonne. All grades of wheat added just 25 roubles per tonne, it said. "After most recent announcements regarding additional distribution of 2 million tonnes of grains from the government intervention stocks, prices in Central Russia and Western Siberia started to decline by $1-$2 per tonne," the Institute for Agricultural Market Studies (IKAR) said in its note.
"Prices in southern Russia stopped rising after a post New Year rally," it said, adding that it expected arrival of first shipments of Ukrainian maize shortly. SovEcon believes the start of intervention sales will not result in a significant decline of grain prices as it expects competition at tenders to keep prices close to market levels. "Sunseed market is very thin," IKAR said. Sunseed prices were little changed at $667 per tonne, compared to $677 a week ago. Sunoil market was also thin with prices slightly moving up to $1,589 per tonne from $1582.
Comments
Comments are closed for this article.