Russian grain unlimited

The Russian Government says it won’t introduce curbs on grain exports as it considers the country’s stockpile large enough to meet domestic demand. It has also increased the grain export forecast from 25 to 27mln tonnes.

Russia had planned to impose export duties if grain exports exceeded 25 million tonnes, but changed their minds after new data. The Russian grain stockpile as of January, 1 was 36mln tonnes compared to 33mln tones last year. Also Russia’s harvest was 93.9mln tones slightly exceeding the expected 91-92mln tones. Experts are optimistic about the Government’s decision. They expect global grain prices will fall allowing exporters to make deals.  “This is the best decision the Government could make”, Dmitry Rylko, General Director at the Institute for Agricultural Market Studies, told RBC Daily. “It’s not necessary that an estimated 27mln tonnes will be exported”, he added.If 27mln tonnes of grain are exported, it will set a Russian record. The last time Russia’s grain exports set a record was in 2008 when 23.6mln tonnes were sold abroad.