Wheat Prices Rising

Supplies of milling wheat available for export from the Southern Federal District declined, the Institute for Agricultural Market Studies said Tuesday.

"We see a stormy price increase because grain resources are becoming limited in the south," said Oleg Sukhanov, the institute's grain analyst. "This forced exporters to search for grain in other regions, including central Russia, Volga, Ural areas and Siberia."

Free-on-board prices at the port of Novorossiisk rose 6 percent to $260 a ton over the first 20 days of January, the institute known as Ikar said. Higher transportation costs are driving up prices for fourth-grade milling wheat, Russia's main export grain, Sukhanov said. That's contributing to an increase in global wheat prices.

(Bloomberg)

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