March 3, 2006

Russia's July-February grain exports up 68 percent on year

Russia's grain exports during the first eight months of the 2005/06 marketing year (July-June) increased 68 percent on the year to 10.1 million tonnes - including flour in grain value, an analyst with Russia's Institute of Agrarian Market Research said Thursday (Mar 2) citing preliminary customs statistics.

"Volumes of exports continued to decline in February, and amounted to 650,000 tonnes, compared with 770,000 tonnes in January," Igor Pavensky was quoted as saying by Prime-Tass news agency.

The decline was due to higher domestic prices. Another reason for the drop in exports was closure of the Azov seaports, which handle big volumes of exports, due to difficult ice conditions. The majority of grain exports were handled last month at the Black Sea port of Novorossiisk.

Wheat is the major grain export item, accounting for 8.3 million tonnes in July-February, up from 5.1 million tonnes a year earlier. Barley exports amounted to 1.4 million tonnes against 640,000 tonnes a year earlier.

Russia's 2005/06 grain exports might be lower than the previously expected at 12.4 million tonnes, Pavensky said, citing increased domestic prices as the main reason. Last season, Russia exported 9.1 million tonnes of grain.