Russian grain output seen at 85 mmt

Date:04-04-2011

First deputy PM Viktor Zubkov estimated this year's grain output in Russia at 84-85 mmt vs. 60 mmt harvested in 2010. To remind, in 2010 Russia suffered about 13.3 mnl ha crops' loss due to the drought, which amounts to about 30% of all harvestable areas.

As reported this week, Zubkov argued that there were no reasons to cancel the ban on exports of grain introduced in August 2010 until July 1 2011. Zubkov noted that the ban is going to last until July as planned, when the situation with domestic and foreign grain market is going to be revised to decide on ban's continuation. Board of Russian Grain Union urges to lift the ban prematurely, arguing that as a result of recent trading of grain reserves downward grain price dynamics are seen in all Russian regions. Union believes that grain purchase volumes and prices on the open market are going to decline steadily as a result of state grain interventions, which is going to negatively influence grain producers facing no export options.