Monday, 17 October 2016

Latest Russian agri-business news

Russian Ministry of Agriculture report that from January to October 2016 farmers purchased 13% more mineral fertilizers compared to the same period last year, driven in part by an increase in hectares planted but also a 2-3% drop in fertiliser prices.

The total amount of credit supplied to Russian farmers for seasonal fieldwork is up to 261 billion roubles, which is 28.7% more than the same period last year.  This includes Rosselkhozbank who issued 190.38 billion roubles in loans (+34.5%) and Sberbank who allocated 70.62 billion rubles (+15.5%).

Total Russian grain exports for market year 2016-17 is forecast at 37mmt including an increase in wheat export to 28mmt from 24mmt.

Last week Egypt bought 60kmt of Russian wheat and secured another 120kmt from Romania, no mention of ergot at this point but given the wet season that might only be a matter of time.

Syria's state grain buying agency has agreed to buy 1mmt of Russian wheat following a poor harvest in the region although there is some question over whether this is part of an aid package as the price is low and would be difficult to fulfill as a commercial trade.

The Russian government finally reduced export duty on wheat to zero but retained an element of uncertainty by saying that it will return in the case of a force-majeure such as the devaluation of the rouble or low wheat yields.

Russian import substitution is turning into exports according to Pravda who report that the country will produce a 1mmt surplus of sugar in 2016 which, for the first time ever, could be exported assuming they can get it all out of rain sodden fields.