Russia On Farm Grain Stocks in Agricultural Enterprises Increased !!!

www.agroinvestor.ru / Tatyana Kulistikova Agroinvestor December 4, 2019

Grain sales declined 11.5 %, Grain stocks in agricultural enterprises increased, while those of processors became less.

BY NOVEMBER 1, THE LARGEST GRAIN STOCKS WERE IN AGRICULTURAL ORGANIZATIONS OF THE CENTRAL FEDERAL DISTRICT.

According to the results of January-October, agricultural organizations sold 48.1 million tons of grain, which is 11.5% less than in the same period last year, Rosstat estimated. At the same time, in October, sales volume increased by 13.8% compared with October 2018 and amounted to 9 million tons. Including wheat sales over 10 months, they decreased by 13.1% to about 32.7 million tons, but in October increased by 11.3% to 5.8 million tons. Gross grain harvest on November 1 was 5% higher than a year earlier, by December 3, the difference increased to 9%, according to the Ministry of Agriculture.

By November 1, grain stocks in agricultural enterprises were at the level of 31.6 million tons, including 16.8 million tons of wheat and 4.1 million tons of corn. In general, the indicator increased by 5.4% compared to this date in 2018, including wheat stocks grew by 1.6%, corn – by 18.3%. According to the latter, such dynamics is associated with an increase in gross harvest: if last year, by November 1, about 6.9 million tons were threshed, then in this – 8.6 million tons

By November 1, the largest grain reserves were in agricultural enterprises of the Central Federal District – over 10 million tons (plus 11% compared to the same date in 2018). In the South, they exceeded 6 million tons (plus 10.7%), in the Volga region they reached 5.98 million tons (plus 3.6%). Among the regions, the leader in the availability of grain was the Krasnodar Territory, which is traditionally the country’s largest producer of grain, where stocks amounted to almost 3.3 million tons – 10.2% more than a year earlier. Next come the Stavropol Territory (almost 2.4 million tons), Rostov (1.8 million tons), Kursk (1.7 million tons) and Oryol (1.68 million tons) regions.

But the availability of grain in procurement and processing organizations by the beginning of last month was 16.4% less than last year – 14.6 million tons, follows from the data of the Federal State Statistics Service. Most significantly – by 51.2% – stocks of food rye decreased, amounting to 252.3 thousand tons against 565.1 thousand tons on November 1, 2018. Industry analysts predict that this year’s agricultural crop will be lower than last year and will reach 1.6-1.8 million tons, while the domestic market needs at the level of 2 million tons.

Rye prices are increasing: according to monitoring by the National Union of Grain Producers, by the end of November, the cost of agriculture, depending on the region, varied in the range of 9-14 thousand rubles / ton with VAT, while wheat of the 3rd class cost 10-13.75 thousand. rub / t According to the Federal State Statistics Service, in October the average price of rye reached 8.8 thousand rubles per ton, a year ago it amounted to 6 thousand rubles per ton. Farmers are likely holding back sales in anticipation of even higher price increases. Nevertheless, the production of rye flour over the course of ten months increased by 4.6% to 540.4 thousand tons. Its average producer price by the end of October was close to 15 thousand rubles / ton, a year earlier it was 11.2 thousand rubles / t For comparison, wheat flour for the year rose from 15.3 thousand rubles / ton to 16.6 thousand rubles / ton.

Also, by the beginning of November, stockpiles and processing organizations had reduced stocks of wheat (by 22%), buckwheat (by 3.7%), rice (by 40.4%), and oats (22.4%). At the same time, millet turned out to be 17.9% more, corn – by 43.2%, barley – by 7.7%, Rosstat calculated.

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