August 4, 2011

Russia increases grain production forecast

Russia's forecast for 2011 grain output has been revised from 92 million tonnes to 94 million tonnes, according to the head of the Russian Grain Union (RZS), Arkady Zlochevsky, on Wednesday (Aug 3).

This is the third time RZS has raised the forecast in the month since Russia lifted a grain export embargo, imposed in August 2010 due to a severe drought.

Zlochevsky said grain exports in August would rise to 3.5 million tonnes.

He said Russia could export 20-25 million tonnes of grain by the end of this year, which would put it in the world's top three grain exporters.

Currently, prices for Russian grain hovered over US$250 per tonne, Zlochevsky said.

The official grain output forecast by the Russian Agricultural Ministry is 85-90 million tonnes.

Russia exports its grain to more than 60 countries, with North Africa and the Middle East the main markets. Egypt used to be the major buyer of Russian wheat, purchasing about 25% of its grain export before the 2010 embargo.