July 13, 2012

Russia's 2012 grain crop may be less than 80 million tonnes

Due to drought and unfavourable economic factors, Russia's grain crop is expected to be below 80 million tonnes this year, less than previously expected, the Grain Producer's Union said on Thursday (July 11).

"At the moment, total grain crop is expected at the level of below 80 million tonnes," the lobby cited its president, Pavel Skurikhin, as saying.

The comments from Skurikhin, who also chairs Siberian producer SAHO, contrasted with remarks on from a more broad-based body, Russia's Grain Union, which on Wednesday (July 10) said a cut in forecasts was not warranted despite a possibility that Russia's grain harvest in southern breadbasket regions would be damaged by persistent rain.

But forecasts had been reduced to reflect damage from a prolonged spell of inclement weather. A fierce winter cold snap hit exposed plants, resulting in winterkill in the southern breadbasket regions and a spring drought reduced yields.

Russia's SovEcon consultancy said last week that it had revised down its 2012 forecast to 80 million tonnes from a previous estimate of between 80 million tonnes and 85 million tonnes because of a smaller-than-expected grain yield in the Volga region.