Russia expects record 2017 grain crop

Russia is expected to have another big grain crop in 2017, adding to a record crop this year and increasing pressure on prices, leading agriculture consultancy SovEcon told a conference on Wednesday.
 

In the first major industry estimate for the 2017 grain crop, SovEcon said Russia could harvest 112.5 million tonnes next year compared with a record crop of 119.5 million tonnes expected this year.
 

The harvesting in Russia, expected to become the world’s largest wheat exporter in 2016-17 marketing year which runs until June 30, is almost completed but officials are yet to announce the size of the 2016 crop after drying and cleaning.
 

This year’s record crop will leave Russia with 38 million tonnes of grain available for export in 2016-17 and very high stocks of 19.6 million tonnes by June 30, 2017, SovEcon said.
 

For wheat, that will mean a crop of 72.5 million tonnes with 28 million tonnes of exports in 2016-17 and 12.4 million tonnes of stocks by June 30, 2017, it added. The estimate includes market stocks and government stocks.
 

“For now, these numbers are of a virtual nature but the market will already feel the threat in the spring and, if the (2017) crop prospects are good, that would have a double effect,” said Andrey Sizov, the head of SovEcon.