The harvesting campaign is approaching its close with farmers threshing 83.9 million tonnes of grain by bunker weight by November 1, 1.1 million tonnes more than a year ago.
The volumes are getting closer to 2004 levels, as late spring crops, mainly millet and buckwheat, yield less. Sunseed crop is now nearly 6.1 million tonnes.
The government has bought over one million tonnes of grain including 923,800 tonnes of third class wheat, 131,000 tonnes of fourth class wheat and 12,900 tonnes of rye, which it bought for the first time last week in the current intervention.
So far the government has spent 3.2 billion roubles for purchases. Fourth class wheat prices have been rising for the third week in a row, gaining 100 roubles per tonne in the last seven days. Exporters compete with each other raising bid prices, as they need to rapidly load vessels anchored at ports.
Many producers refrain from selling grain awaiting the prices to rise further.
Third class wheat prices rose more slowly, adding just 25 roubles per tonne. Rye prices were stable in spite of the start of the government purchases, but traders believe they may rise later.