Russia: Feed barley gains in price more rapidly than milling wheat

Feed barley prices rose most rapidly on the Russian grain market last week, analysts said on November, 29.

Grain supply was limited in most regions, as holders of stocks were reluctant to sell.

Barley offer prices rose by 300 roubles ($9.56) to 7,625 roubles per tonne EXW in the European part of Russia, while wheat prices rose by 100-175 roubles, SovEcon agricultural analysts said in a weekly note.

In the south of Russia, dollar denominated prices for third-grade milling wheat rose to $202 per tonne from $199, fourth grade wheat to $195 per tonne from $191, feed wheat to $190 per tonne from $188, the Institute for Agricultural Market Studies (IKAR) said in its note. Feed barley rose to $231 per tonne from $226 in southern Russia with practically no deals struck, maize rose to $259 per tonne from $253, it said.

In Western Siberia, grain prices kept rising for the third week in a row. Third-grade wheat increased to $237 per tonne from $224.

"Western Siberian producers feel difficulties with grain delivery from the south of Russia to other regions and act accordingly," IKAR said. The president of the Russian Grain Union lobby group said last week that the south of Russia, a region which had a grain surplus, is unable to export all of it to regions hit by a severe drought in summer.

Traders reported an increase in the activity of feed and food grain buyers, who are probably trying to build up stocks ahead of long New Year holidays, SovEcon said. Buyers in North Caucasus and Western Siberia have increased activity ahead of the expected lifting of a ban on flour exports from Jan. 1, it said.

01 December, 2010