Russian wheat prices rise further

Russia's domestic wheat prices rose further in the last week with farmers holding onto stock, analysts said on Monday, keeping food inflation concerns in place and a question mark over grain export policy from the key global wheat supplier.

Russia's average domestic EXW (ex-silo) prices for third-grade and fourth-grade milling wheat stood at 8,750 roubles ($280) per tonne last week, up 300 roubles and 325 roubles respectively. During the previous week average prices rose 100-150 roubles, SovEcon agricultural analysts said.

"Grain supply remains generally low. Many farmers sold some grain to meet current cash needs and then took a wait-and-see position," SovEcon added in a note. Russian Economy Minister Andrei Belousov put international grain markets on alert late last week when he said domestic prices for Russian third-class milling wheat could rise to 9,000 roubles ($290) per tonne by the end of the year, adding that if the trend continued the government may consider restricting grain exports.