August 3, 2012

Russia's grain output likely down to 70-75 million tonnes

Two days after it had been cut to 75-80 million tonnes, Russia's grain harvest forecast may soon be lowered to 70-75 million tonnes.

"The optimistic forecast was 80 million tonnes. I think it will fall to a figure of 70-75 million tonnes. It is trending this way," Deputy Agriculture Minister Alexander Chernogorov said at a grain forum in Novosibirsk, Interfax reported.

He predicted that exports for the year would reach 12 million tonnes, lower than the Agriculture Ministry's official forecast of 16 million tonnes.

The ministry had initially predicted a harvest of 80-85 million tonnes due to unusually severe frost in winter and a drought in the summer. However, as dry weather conditions have persisted, estimates have been lowered. Russia's domestic annual grain consumption stands at 72 million tonnes.