July 12, 2011

Russian 2011 grain crop harvest expected to rise

SovEcon has increased its prediction for Russia's grain output this year to 87-92 million tonnes from 82-86 million tonnes because of favourable weather conditions in the European part of the country and the Urals.

Rains in the end of June and in the first 10 days of July have created favourable conditions to the new crop formation.

SovEcon's forecast is above that of the Russian Committee for Weather Monitoring (Rosgidromet) of 85-89 million tonnes and the Agriculture Ministry's of 85 million tonnes.

SovEcon expects wheat output this year to rise to 55-58 million tonnes from 41.5 million tonnes last year, and barley output of 16-18 million tonnes in contrast to 8.35 million last year.

The expected increase in the grains output will push prices down, which will support competitive and aggressive exports primarily of wheat.