Domestic Wheat Prices Plummet by $25

Domestic wheat prices plummeted by more than $25 last week to narrow the gap with forward export prices set for the first wheat of the new crop in July, and market analysts said more cuts are expected this week.
Grain producers in southern Russia started selling their remaining old-crop stocks and, with demand sluggish, conceded price cuts on most types of grain, Moscow-based agricultural ­analysts SovEcon said in a weekly report.
“Grain prices lost an average 150 to 400 rubles a ton in the last week, compared with 50 to 200 rubles a week earlier,” SovEcon said. Fourth-grade wheat saw the biggest losses, falling 500 rubles.
“The market has further to go,” SovEcon said, forecasting a new-crop price of 5,200 rubles to 5,700 rubles ($220 to $240) per ton from 7,500 to 8,000 rubles a ton currently.
Southern areas of Russia will start harvesting barley within the next two weeks, with wheat to follow two weeks later. “Domestic prices expect further dramatic shrinkage to match start-up export prices of the new harvest,” the Institute for Agricultural Market Studies said.
IKAR said domestic prices for third-grade wheat had declined $25 in the last week to $343 per ton. Fourth-grade wheat fell $27 to $328 per ton.