News
15.04.2011
Russia: difficult situation on the domestic market of grains
The present situation on the Russian market of grains keeps rather difficult, according to experts. The grain export embargo almost stopped selling volumes of grains from the southern regions of Russia, where agrarians already started the mass sowing works of grains and leguminous plants. The harvesting works of early grains will begin in the nearest future.
The current trend of falling of grain prices will possibly continue and cause the serious problems for grain producers, added the experts.
According to them, demand for grains from the southern regions is quite low to date, and without opening of the export trade in the nearest months the tendency will continue. Restoring of grain exports, even in the limited version (export quotas or export duties), would become the possible solution from the situation.
According to Vladimir Petrichenko, General Director of ProZerno Ltd., in the case of acceptance of the decision on prolongation of the grain export ban, the prices on the domestic market will decrease by the range of 500-1000 RUR/t compared to the present level. But if the export ban not to be prolonged, Russian grains will return on the world market, and the domestic prices will become comparable with the world ones.
But to date the variant of prolongation of the export ban is more probable, due to vagueness of the current year grain harvest volumes, added he. At the same time, in the case of increasing of protesting moods of grain producers, due to the fall of prices, the Government also can cancel the grain export ban after July 1.,
Materials AgrimarketInfo
