July 2, 2010

Russia sees lower grain export for 2010-2011

Russia is likely to export in the 2010-2011 marketing year 19.8-21 million tonnes of grain compared with 21.1 million tonnes in the 2009-2010 marketing year, according to the agriculture ministry.

The ministry also said Russia's grain harvest this year was likely to fall to 90.1 million tonnes from 93 million tonnes in 2009 because of drought.

The ministry said 4th grade milling wheat would, as usual, account for most of Russia's grain exports in the coming marketing year. Barley exports would fall because of drought in the Volga and Central Russia regions while corn exports were not likely to increase for the same reason.

But the fall in harvests and exports could be even steeper. Prime Minister Vladimir Putin expressed concern earlier this week that Russia's grain harvest this year was likely to be 3-6 million tonnes lower than the earlier estimates of 90 million to 93 million tonnes because of the drought in the country's Southern and Central regions.