MOSCOW: Russia could harvest a record grain crop this year, allowing it to boost exports to the all-time high and replenish state stocks including with grain from Crimea, Arkady Zlochevsky, the head of Russia’s Grain Union, said on Wednesday.
Russia, one of the world’s largest wheat exporters, is in the process of harvesting a record crop at a time when its relations with the West have soured over the March annexation of Crimea from Ukraine and failure to de-escalate a military conflict between Kiev and pro-Moscow rebels in eastern regions.
Russia’s 2014/15 grain crop may beat the 2008/09 record of 108 million tonnes if weather conditions remain favourable, Zlochevsky told a briefing in Moscow oyesterday.
The Union’s current crop forecast stands at 104 million tonnes, including 60 million tonnes of wheat, he said, compared to the official government estimate of at least 100 million tonnes for all grain. “It may be the second largest crop in Russia’s contemporary history. It can be even higher - we can beat the record of the 2008/9 season when we harvested 108 million tonnes,” he said.
He forecast grain exports reaching a record of 30 million tonnes, including 4 million tonnes in August, up from 3 million in July. Wheat exports for the whole 2014/15 marketing year which started on July 1 are seen at 22 million tonnes at least.
The Russian government wants to use the large crop to replenish state stocks through grain market interventions, purchasing grain on the domestic market. It plans to start purchases in September and buy up to 5 million tonnes during this marketing year.
Reuters
