July 29, 2010

Russia may restrict feed wheat export amid tightening supply

Russia may restrict the export of grain used for animal feed in the autumn, assuming the grain harvest outlook falls further and shipments abroad continue in the interim, according to the SovEcon agricultural research firm.

SovEcon Tuesday (Jul 27) cut its grain-harvest forecast for 2010 to between 70 million and 75 million tonnes, from 77 million to 78 million tonnes earlier, amid Russia's severe heat and drought.

Prime Minister Vladimir Putin and his deputies have sought both to preserve Russia's potential to export grain and to prevent cattle breeders from slaughtering herds amid surging domestic grain prices.

A spokesman for the Agriculture Ministry had no immediate comment on the possibility of export restrictions.