Wet Weather Delays Grain Harvesting

A massive grain harvesting campaign in the south of the country has been delayed because of rainy weather, while prices of old crop grain kept declining last week, analysts said.

"Grain supply keeps dwindling, but producers are not in a hurry to sell grain at current low prices, which they believe are not justified," SovEcon agricultural analysts said.

Old crop wheat offer prices fell by 200 rubles to 300 rubles ($8.70 to $13) per ton, although in the south, where the harvesting had started, there was not sufficient supply of old crop grain.

In the east, only small deals have been registered as buyers expected a further price decline. Rye prices declined by some 500 rubles per ton in the Volga region and in the Urals on expectations of a good crop, SovEcon said.

"Winter barley prices have dropped from initial startup levels below psychological level of 5,000 rubles to 4,700 rubles" the Institute for Agricultural Market Studies said.