News
18.07.2011
Russia: increase of grain harvest volumes to lead to reduction of prices - forecast
According to Andrew Sizov Jun., Executive Director of the Analytical Center SovEcon, due to the increase of grain production volumes in the world, including Russia, the market should expect for reduction of the price of Russian wheat. He expressed this opinion during the Analytical forum in Kiev on July 14.
The expert noted that the growth of wheat exports from Ukraine, Russia, Kazakhstan to the level of 20 mln tonnes, will have an impact on prices. According to A.Sizov, wheat prices are expected to be not less than 220-240 USD/t on FOB terms.
While speaking about the situation on the domestic market, the expert noted that last season farmers potentially received less profits by 25% compared to the planned results, due to rather significant reduction of grain harvest volumes in Russia. Thus, in the current season agrarians of the Volga and Central regions will be active in selling grains.
According to A.Sizov, indicative prices for 4-grade wheat will total nearly 4500-5000 RUR/t.
