Volga Baikal AGRO News Update on Oats Prices Development in Russia

Oats prices may remain high, Analysts predict a decline in the yield and note a deterioration in the quality of raw materials.

According to the preliminary forecast of the Institute of Agricultural Market Studies ( IKAR), the oat harvest this year will be 3.9-4.1 million tons against 4.4 million tons in 2019. “However, the harvesting campaign in many regions is still ongoing, so the gross harvest may turn out to be slightly higher than current estimates,” she told Agroinvestor»Deputy General Director of IKARIrina Glazunova. At the same time, according to her, the quality of food oats leaves much to be desired – this is reported by producers of oatmeal and flakes during the monitoring of the IKAR…

“Now the cost of oats in the Altai Territory – the largest region of production of this agricultural crop – is 13 thousand rubles / ton, including VAT, and even higher, – said Glazunova. – For comparison, a year earlier oats cost 6.1 thousand rubles / ton, and at the beginning of the current grain season – 8.5 thousand rubles / ton ”.

The wholesale price of oatmeal in Russia increased by 22.1% over the year, reaching 27.1 thousand rubles per ton by the end of August, IKAR notes… For comparison, in the same period last year, this cereal cost 20 thousand rubles / ton with VAT. The previous maximum – 24.9 thousand rubles / t was recorded at the end of April 2016.

Prices for food oats started from high values ​​this season, and reached new all-time highs in August, IKAR reported earlier…. Among the reasons – the third consecutive reduction in agricultural crops, as well as unfavorable weather conditions in the regions – the largest producers, primarily in Siberia, which accounts for about 40% of the gross harvest of oats. The second factor also influenced the quality of raw materials, so that in the new season, producers of oat groats and flakes will have to compete for high-quality oats of cereal conditions, IKAR predicts… As a result, prices for raw materials and cereals are likely to remain at a high level.

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