October 27, 2008

Despite '08 rise, Russia grain exports seen to fall

Russian grain export this year has increased compared to the previous years, but they will fall in the nearest future, said Alexander Korbut, the vice-president of Russian Grain Union.

He said in July, the exceeding of last year's index totalled 309,000 tonnes; in August 570,000 tonnes and 698,000 tonnes in September. During all new agricultural year (since July 2008), Russia has already exported 7.3 million tonnes of grain and in the nearest months, the rates of export will decrease due to fallen prices on the world market. In October, 2007, Russia exported 3.15 million tonnes of grain, which broke a record during all recent years.

During two weeks of October 2008, the export totalled 1.05 million tonnes and the forecast of Grain Union states that this agricultural year (July, 2008 - June, 2009) grain export from Russia will total 20 to 21 million tonnes, but the situation depends on the quality of the grain and the world prices.