English
German
Russian
Volga Baikal AGRO NEWS Update on the Situation on the Grain Harvest in Russia !!!
15.3 million tons of grain have already been exported abroad this season.
At a cabinet meeting, Prime Minister Mikhail Mishustin announced an increase in grain harvest in 2020, which allows Russia not only to meet its own needs, but also to increase exports. “Grain production is one of our key export positions, more grain has already been threshed than on the same date last year – according to the latest data, more than 126 million tons,” – said the head of government (quoted from the meeting transcript).
During the meeting, the head of the Ministry of the Agriculture Dmitry Patrushev spoke about the preliminary results of the harvest campaign, noting that, in general, it is proceeding normally. The department expects that this year the gross harvest of wheat will be at least 82 million tons, which is 7.5 million tons more than in 2019, he recalled. In general, the gross grain harvest, according to the ministry’s forecast, will exceed 125 million tons in net weight. D.Patrushev also drew attention to the export potential of the agricultural sector.
Due to the major successes in agriculture and food production, the United States began to consider Russia more likely its competitor than a foreign trade partner in this area, the US Secretary of the Agriculture Sonny Purdue reports to TASS. “Before, the Russians were importers of wheat, and now they are its exporters,” – he added.
On the eve of the exhibition “Golden Autumn” D.Patrushev clarified that the mechanism of non-tariff quotas for grain exports remains relevant. Ministry of Agriculture plans to apply this measure in the current and subsequent seasons, “- quoted by TASS. It is assumed that the restrictions will apply in January-June 2021. The size of the quota has not yet been calculated, it may amount to 20 million tons, Izvestia writes. Previously, industry experts estimated that this season Russia could export about 50 million tons of grain.
As Igor Pavensky, head of the analytical center “Rusagrotrans” told to Agroinvestor, now Russia is going at a record rate of grain export – 15.3 million tons have already been shipped, which is 1.3 million tons more than last year. According to the expert, this level was last reached two years ago. The export of wheat became a record – it amounted to 13 million tons, last year this figure reached 12.3 million tons. The export of barley compared to the same period last season increased 1.5 times to 1.9 million tons.
From the point of view of directions, Russia is increasing its share in the countries of Southeast Asia (Philippines, Bangladesh, Senegal), supplies to the countries of Eastern and Southern Europe, to Saudi Arabia are also growing, – continues Pavensky. Also in the list of importers there are states that have not bought Russian wheat for a long time, for example, Thailand and Finland, Jordan, Saudi Arabia, Pakistan, – says the expert. The first three exporters now include TD Reef, Aston and Mirogroup.
At the same time, export quotations for Black Sea wheat recovered to a two-year high and exceeded $ 240 per tonne (FOB deep-water ports), and prices for Russian wheat on the basis of CPT-port reached their all-time high, – reports Refinitiv. Such dynamics is associated with concerns about the state of wheat crops for the harvest of 2021 due to a lack of moisture in the soil and the volatility of the exchange rate, as well as a restrained supply from farmers. According to Refinitiv, the prices of Russian wheat offers are additionally supported by the revival of domestic demand from flour mills.
