Russian weekly grain market report

Russian grain prices kept declining in the week to May 28, pressed by continued intervention sales.
Food wheat price declines in southern regions accelerated as producers lowered offer prices ahead of the new harvest.
The Russian government has 56,300 tonnes of unsold grain in its intervention stocks, including 12,000 tonnes of third class wheat, 9,600 tonnes of fourth class wheat and 34,700 tonnes of milling rye.
An official with the Food Market Regulation Agency in charge of the tenders said trade sessions will be extended to June. He also said that an additional 50,000 tonnes of third class wheat acquired in 2001 may be tendered.
Most of the owners of grain stocks kept lowering offer prices ahead of the start of the new harvesting campaign. Prices of food wheat fell most notably, especially in the southern part of European Russia.
Minimal offer prices of third class wheat declined by an average of 300-500 roubles per tonne over the week in the North Caucasus, while those of fourth class wheat declined by 200-300 roubles per tonne.
A similar decline was registered in the Volga region, while in Siberia and in the Urals food wheat declined by 100-200 roubles per tonne.
Feed grain prices declined more slowly. Feed wheat eased by 100-200 roubles per tonne in most regions and feed barley by 150-200 roubles.
Wheat flour eased by 50-100 roubles per tonne on the average.
Sunseeds became cheaper in most regions due to low demand from oil crushers.
Sunoil prices were largely stable. A seasonal rise has been curtailed by high oil stocks at crushers resulting from a record output.
Traders said prices will remain stable in the coming weeks. But a decline may follow if falling world prices cut sunoil exports.