Grain prices in Russia continue to fall, and the drop is such that the main grain products are already sold below production cost, according to monitoring by ProZerno, writes Interfax.
“Supply in the market significantly exceeds demand, and there is no increase in demand, there is a slide into the negative. The selling prices are lower than the production cost. There are already mass sales of wheat, corn and barley below the production cost,” Vladimir Petrichenko, the company’s general director, told Interfax.
The negative picture of high grain stocks pressing on the market is complemented by an increase in export duty. “Since April 19 we get a good plus: the duty on wheat adds 420.1 rubles, on barley – 834 rubles, on corn – 543.5 rubles per ton,” he said.
According to the company’s monitoring, the price of third-class wheat decreased in the Black Earth Region – by 240 rubles, to 11,880 rubles (145,30 USD) per ton (EXW European Russia, including VAT). In the South the fall amounted to 235 rubles, to 13,717 rubles (167,77 USD), in the Urals – 210 rubles, to 12,067 rubles (147,59 USD).