December 14, 2010

Russian grain inventory falls 24.6% on-year

As of November 1, Russia's grain supply stood at 40.4 million tonnes, down 24.6% against the same period of last year, said the Russian Grain Union industry lobby.

Grain stocks at large and medium-sized farms, known as agricultural enterprises, were 22 million tonnes, 35.6% down from a year ago. At procurement and processing companies, they were 18.4 million tonnes, 5.9% down, a union bulletin said on Monday (Dec 13).

"Grain stocks are continuing to dwindle compared with last year's volumes. In the centre and in the regions along the Volga river they are at some 40-45% of what they were a year ago." Andrei Sizov Sr., President and CEO of leading Russian agricultural analysts SovEcon, commented.

He added that some Russian regions were struggling to cover shortages after selling grain abroad and to other Russian regions the previous year.

However, Sizov's outlook for import volumes was unchanged by the data and stood around four million tonnes for the 2010/11 crop year started in July.

Russia, formerly the world's third-largest wheat exporter, was hit by a severe drought in 2010 and was forced to ban grain exports. It has held talks with several countries on importing up to six million tonnes of feed grain.

The bulk of shipments, mainly corn, was expected to come from Ukraine. "Ukraine now is looking for a single exporter capable of taking care of all exports to Russia," Sizov said.

Earlier on Monday (Dec 13) the head of the state grain trader, the United Grain Company said the country did not need imports now, as there was sufficient grain in some regions, but underdeveloped infrastructure was an obstacle.