July 28, 2010

Russia's 2010 grain harvest may fall below estimate

Russia may harvest less than 80 million tonnes of grain this year as severe drought has hit many key grain-growing regions, Deputy Economy Minister Andrei Klepach said Tuesday (Jul 27).

"The previous official grain crop forecast was 80-85 million tonnes. Now we believe the outcome of the year may be less than 80 million," he said.

Earlier on Tuesday analysts said the drought might cut the Russian grain production even further - to less than 70 million tonnes.

The agriculture ministry last week said the crop might be lower than the previous official estimate but did not provide a more exact forecast.

Russian grain prices shot up last week on advancing drought and farmers' reluctance to sell on the rising market, with FOB Black Sea prices for ordinary wheat reaching over US$210 per tonne compared with US$198 the week before.