Agency: Russia may export 42.9 mln tns of grain in 2019–2020

MOSCOW, Apr 27 (PRIME) – Russia may exports 42.9 million tonnes of grain in the current agricultural year that started on July 1, 2019 and will end on June 30, 2020, including 33.7 million tonnes of wheat, agricultural research agency SovEcon said in a research note on Monday.

“SovEcon estimates exports of all grains, legumes, and products of their processing in the 2019–2020 season at 42.9 million tonnes, including 33.7 million tonnes of wheat,” the note read.

The Russian government introduced a 7 million tonne non-tariff quota on exports of wheat, rye, barley, and corn to the non-CIS countries until June 30, and the Agriculture Ministry said that exporters exhausted the quota on April 26. SovEcon said that the grain traders made preliminary customs declarations to book exports for later days in the past few weeks.

“SovEcon estimates the amount of sales in April at 3.7–3.9 million tonnes, with the remaining volumes being exports in May or at the beginning of June,” the agency said.

Companies exhausted the export quota, but domestic grain prices started growing again, with the average prices for 3rd-class wheat growing by 2.1% to 14,500 rubles per tonne and of 4th-class wheat by 2.5% to 14,475 per tonne.

“The prices were supported by a weak ruble and aggressive purchases of some exporters. SovEcon thinks that the internal grain market is close to its peak,” the research note read.

(74.7163 rubles – U.S. $1)

End %%md/jst%%