January 30, 2013

Russia's grain exports will decline further this season as the country's farm ministry is planning to reduce down to 14 million tonnes for its grain export forecast in 2012-13, according to deputy minister, Ilya Shestakov.

Trade at that level would represent half the 28 million tonnes of grain shipped in 2011-12, on USDA estimates, and imply only minimal exports for the rest of the season, with the tally already at some 13 million tonnes.

The strong early pace of shipments in 2012-13 has nearly exhausted exportable supplies undermined by a poor harvest last year, when dryness slashed wheat production to a nine-year low.

Wheat stocks at agricultural enterprises, excluding small farms, as of January 1 stood at 13.3 million tonnes, down 39% on year, consultancy SovEcon said, citing analysis of official data.