Russia’s grain exports rise as domestic prices fall

According to figures from the ministry, deliveries increased to 322,000 metric tonnes in the first 17 days of April from 205,000 tonnes in the first 20 days of March.

Average milling-wheat prices have been falling since the second week of February and reached 9,575 rubles (US$303) a tonne last week, according to figures from researcher SovEcon. That means that the government finally succeeded in the fight against high grain prices which was hampering the development of the compound feed and livestock industries in the country in recent months.

It is noteworthy that government has sold almost 3 million tonnes of cereals from stockpiles since October in an effort to reduce prices, which climbed to record highs after a drought reduced last year’s crop to 70.9 million tonnes.

“Exports increased in April because prices in southern Russia fell and became competitive for supplies to such countries as Tunisia,” Vladimir Petrichenko, director of Moscow-based consultancy ProZerno claim.

With prices continuing to fall Russian analysts are forecasting that exports will remain attractive and will continue to rise.