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Home / Bioethanol / News Russia's Wheat Prices Up 10% Over the WeekNOVECON: Russia/CIS Agribusiness Digest (Russia) Russian prices on wheat, one of the core products on the agricultural market, grew by 10% over the week. Grain consumers are ready to urge the government to follow Ukraine's example and outlaw exports. The price hike started after Russian Agriculture Minister Alexei Gordeyev forecasted the 2007 wheat harvest at 76 million tonnes, or 2.4m tonnes lower than last year's. As a result, «a price hysteria» encompassed the market; third-grade wheat prices grew by R475 (9.0%) to R5,880 per tonne and four-grade wheat went up in price by R525 (10%) to R5,775. Experts say a sharp rise in prices was caused by un unexpectedly large reduction in Ukrainian grain exports; in June 2007, an export quota was at 3,000 tonnes, which is nearly the same as an export embargo. Extensive grain purchases by Egypt and an increased sea freight are cited among other reasons. Long-term price hike factors are also considered: the growth of the demand for grain used by third world countries in the livestock industry and the rise in the demand for grain in the biofuel production sector developed by EU. Source: WWW.KOMMERSANT.RU, July 9, 2007
Date: 09.07.2007 Leave your comment
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