November 15, 2012

Russia is expected to cut grain exports to 0.5-0.6 million tonnes per month in January and February.

Arkady Zlochevsky expected Russia to export 14-15 million tonnes of grain during the 2012-13 marketing year, of which about 1.5 million tonnes would be shipped in November and about one million tonnes in December, the Interfax news agency reported, citing the head of the Russian Grain Union.

Russia, which had been the world's number three wheat exporter, was hit by hot and dry weather this year, which is expected to slash its grain harvest to 71.7 million tonnes from last year's 94 million.

Next year, the country may harvest some 90 million tonnes or more, Zlochevsky said on Wednesday (Nov 14). He previously said he expected Russia to increase the wheat harvest to no less than 50-55 million tonnes next year from this year's 40 million tonnes.

The country's official exportable surplus of 10 million tonnes of grain has already been exhausted, but some shipping continues.

Russia has already exported 11 million tonnes of grain, including 8.5 million tonnes of wheat from the start of 2012-13 marketing year on July 1 through November 8, Russia's Institute for Agricultural Market Studies (IKAR) said earlier on Monday (Nov 12).