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13:48
RUSSIA BOOSTS GRAIN EXPORTS 60% TO ALMOST 1.3 MLN TONNES IN JULY

Moscow, July 31 (Interfax) - Russia increased grain exports 60% to almost 1.3 million tonnes in July 2009 compared to July 2008, the Rusagrotrans analytical center said.

The company said the increase in exports could be attributed to a large amount of grain stocks left over from the 2008-2009 harvest.

Grain exports will likely total about 1.8 million tonnes in August, which is on par with the exports seen in August 2008, the company said.

About 0.5 million tonnes of grain were exported via rail in July, up 25% from July 2008, while grain shipments by rail within Russia totaled roughly 1 million tonnes, up 20%.

Rusagrotrans said grain exports will decline in the new agricultural year, which began on July 1, 2009, due to 12% decline in wheat trade on the global market resulting from large harvests in several importing countries.

In addition, the lower harvest in Russia this year could lead to a further reduction in grain exports. Rusagrotrans predicts the gross grain harvest will not exceed 93 million tonnes this year compared to 108.1 million tonnes in 2008.

Nevertheless, Rusagrotrans chief analyst Igor Pavensky said Russia could remain among the top three wheat exporters this year due to more competitive prices on Russian grain and export up to 16 million tonnes compared to 18.2 million tonnes in the previous agricultural year. "At the same time, thanks to the introduction of new logistics technologies, we expect that exports by rail will remain at last year's record level and maybe even surpass it," he said.

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