May 21, 2014

Russia's soy imports may increase further this season after domestic production was affected by flooding and rising consumption, according to market researcher, Ikar.

Inbound shipments may reach 1.6 million tonnes in the marketing year ending August 31 and remain there for the next season. The figure represents a rise from 690,000 tonnes a year earlier, said Ikar analyst, Itina Kuguchina.

Imports were 1.1 million tonnes by May 1 after flooding destroyed crops in the Russia's Far East, the key soy growing area, Kuguchina said. Russia's Sodrugestvo Group SA completed an expansion of its Kaliningrad plant which more than doubled capacity, according to the company's website.

"Imports will stay the same next season even as demand for soymeal is rising," Kuguchina said. "If the good weather keeps on, we have a chance to harvest a bigger crop because we expect the sown area to be larger."

Government weather agency, Gidromettsentr Rossii, reported that weather in the country's Far East was "satisfactory" in the first 10 days of May, and should remain so in the following 10 days.