Last Updated :
06 July 2010 at 18:20 IST
Russia sees better grain output despite drought
MOSCOW (Commodity Online) : Russia on Tuesday denied reports that warmer than average summer temperatures could see Russian grain exports slump or that Russia could face domestic shortages.
Russian Agriculture Minister Yelena Skrynnik said the grain forecast was being reduced from 90 million tones to 85 million, to account for the drought in some grain producing areas.
But the Minister said even with reduced domestic production Russian would still be a major grain exporter, adding that export capacity should remain at about 20 million tones, with Russia’s grain reserves at record levels.
"Even if the drought reduces the grain harvest, we will be able to fully meet domestic demand and maintain our export potential. There is no cause for alarm in that area.
Russia's grain reserves, which total 24 million tonnes, are 20% higher than they were last year. Therefore, even if grain production declines, we can still fully meet domestic and export demand."
Even if the drought reduces the grain harvest, we will be able to fully meet domestic demand and maintain our export potential. There is no cause for alarm in that area.
Russia's grain reserves, which total 24 million tonnes, are 20% higher than they were last year. Therefore, even if grain production declines, we can still fully meet domestic and export demand."
Analysts said with Central Russia and much of Eastern Europe experiencing a warmer than average summer and could reduce grain output it is still well above Russian consumption.
“This year we expect to have about 85 million tones of grain, which is 12% down from 97 million tones in 2009. This compares to the average consumption figure of 77 million tones. In fact, 2008 and 2009 had record harvests, with 108 million tones of grain collected in 2008." said Russian Farms group of Companies.
“The drought we have here in some Russia’s regions will certainly influence the volume of grain harvest. But we should keep in mind that we compare this year figures to 2009 ones – a year of excess supply. So, in 2010 we’ll have just enough grain, there’s no a real problem.” It added.
“In fact, less grain in Russia is favourable for the market, as lower harvest will help to get rid of excessive supply and balance the food prices, which is good for both the producers and consumers.” added said Russian Farms group of Companies.
MCX Copper 29 June 2012
contract was trading at
Rs 400.9 , up Rs. 3.15 . What's your view on it?
After reading this article, people also read:
