OREANDA-NEWS. On 09 April 2008 was announced, that As SOVECON experts’ data show, prices on the world grain market fell considerably: following the results of GASC tender American wheat was purchased at USD24 (per tonne) cheaper against the price of the previous tender. Europe saw an even bigger price slump: “Trading closed with a EUR10,25 to EUR260,25 (USD410) decrease in May futures for French milling wheat”, SOVECON stated on March, 28 of the current year.

Analysts say the rise in prices for wheat on the Russian grain market has also slowed down. However, changes on the domestic grain market make less progress against the world price falling trend.

Slower pace in the increase of prices for grain in Russia was brought about by the exchange trading within governmental interventions, an event where along with many other flour-producing enterprises OJSC PAVA, the largest grain processor of Siberia and the Far East took part. PAVA plans to further participate in the trading in April, 2008.

Besides, recently the number of commercial offers from Kazakh traders to PAVA was seen rising. Businessmen provided the huge stock of wheat in silos of Kazakhstan figuring to export grain while prices are going up on the world market. But taking into account the latest developments they weren’t able to sell grain at a high price to foreign partners. The unstable situation on the Russian market of wheat made it unattractive for Kazakh traders. Today the Kazakh side offered PAVA a more advantageous price for raw materials compared to the Altai grain manufacturers who still ask 9,200 roubles per tonne while the cost of Kazakh wheat today stands at 8,500 roubles per tonne.