August 7, 2013

Russia's grain exports reached 2.4 million tonnes in July 2013, just short of the 2.6 million tonnes the country exported in 2011 the month after the grain export ban was lifted.

Such an increase came as a result of earlier harvesting in the Krasnodar region, which kicked off about 10 days ahead of schedule, said Rudolf Bulavin, director for research and information department at the Russian Grain Union.

The other factor is the price dynamics, Bulavin added. "As domestic grain prices started to fall - to about US$100/tonne - Russia's producers switched to foreign markets."

In addition, companies in Russia have already concluded collateral contracts earlier, said Vadim Vikulov, general director at Aston, the country's leading exporter of agricultural goods.

Egypt and Turkey were Russia's two major customers.

Vladimir Petrichenko, general director at ProZerno, Russia's analytical service, expects grain exports to grow further in August.