Motherland Opens Bins
Contrary to all arguments of market players, the government launched yesterday the grain interventions. Of 1.5 million tons laid aside by the state, 30,000 tons were sold on the first trading day. The maximum price was 5,850 ruble/ton, and the minimal one sank to 5,150 ruble/ton, while the market price was 6,638 ruble/ton.
The government launched its grain interventions yesterday, October 29, 2007. Roughly 30 tons of soft wheat, third grade, were sold during a day, said Sergey Shakhovets from the Grain Union. Overall, the government has 1.5 million tons in the intervention fund, which are stored at 120 elevators, Shakhovets specified.
The yesterday’s interventions were arranged by the National Commodity Exchange and held via the unified on-line system of grade trading. The bidders were 12 enterprises of flour-milling industry and Agency for Food Market Control was the state agent for the interventions.
The starting price was 5,000 ruble/ton. According to Zerno-Online Agency, the grain price of the Center of Russia equaled 6,638 ruble/ton as of October 26. The prices have been declining since October 19, when the cost was 6,650 ruble/ton.
The price corridor formed in the course of the trading ranged from 5,150 ruble/ton to 5,850 ruble/ton and 412 lots were sold overall.
Next time, the grain interventions will be held October 31. But the market analysts doubt that the government will be able to contain inflation through the interventions, speculating that their true purpose could be to psychologically pressurize the market. “The price pick has been passed even without them, there is no growth and the market goes through adjustment,” representative of the Grain Union explained.
www.kommersant.com
All the Article in Russian as of Oct. 30, 2007
|
