May 7, 2008

Russia grain export tariffs to ease in June

Russia's grain exports tariffs, especially on wheat and barley, is expected to halt in June, the USDA Foreign Agricultural Service (FAS) said.

The USDA estimated that the total grain production of Russia would increase to 84.67 million tonnes, aided by a 200,000-tonne increase in corn production.

Wheat and barley production forecasts remain at 51.2 million tonnes and 17.7 million tonnes respectively.

Russia's grain export forecast is at 14.5 million tonnes, up from 1.2 million tonnes in 2007.

The forecast includes 12.8 million tonnes of wheat and wheat flour in grain equivalent, and 1.55 million tonnes of barley, the FAS said.

Russian grain prices are seen to stabilize by mid-April 2008 at higher levels than previously expected.