October 19, 2012

Russia may export 15-16 million tonnes grain this season

In the current season, Russia is likely to export 15-16 million tonnes of grain as prices may become stable for now because the market has priced in drought and other factors.

"About 15-16 million tonnes of grain is the export potential of Russia in this season," Russian Grain Union head Arkady Zlochevsky told Reuters on the sidelines of a grains event in Egypt. "We are forecasting to export 13-14 million tonnes."

"The rest that we do not export, it will go to the opening stocks of the next season," he said.

The 2012-13 marketing year began on July 1.

"We are not expecting any rise in prices because we know the negative factors," said Zlochevsky, ruling out any rise in prices before March.

Output from Black Sea states that supply a quarter of world wheat export volumes has been hit hard by hot and dry weather.

Wheat prices have been pushed higher by speculation that Russia will ban grain exports this year, as it did after a drought in 2010, although Russian President Vladimir Putin has said there were no talks over such a move.