March 20, 2006

Russia's July-February grain exports 10.1 million tonnes

Russia exported 10.1 million tonnes of grain between the beginning of the current marketing year July 1, 2005, and Feb 28, compared with 6 million tonnes a year earlier, according to agrarian markets institute IKAR.

Wheat exports during the period were 8.3 million tonnes, compared with 5.1 million tonnes a year earlier, while barley exports rose to 1.4 million tonnes from 640,000 tonnes.

Grain exports in February fell to 650,000 tonnes from 770,000 tonnes in January, going mostly via the port of Novorossiisk as ports in the Azov Sea were idle because of ice.

Grain exports fell in February because Russian prices exceeded world prices. Fourth grade wheat, Russia's main export item, sold at Novorossiisk at US$145-US$150/tonne, while similar French wheat sold at US$135/tonne.

IKAR said it expected the rate of Russian grain exports to fall considerably in the coming months, with overall exports in the current marketing season forecast at 12.4 million tonnes, compared with 9.1 million tonnes in the 2004/05 marketing year.