IKAR in Mass and Industry Media

Russia's 2017 grain crop prospects brighter due to large sowing area

Reuters

Russian farmers have sown winter grains on the largest area of the last seven years and will plant more in the coming weeks, improving prospects for the 2017 crop, analysts said on Thursday. Farmers in Russia, a major global wheat exporter, produced a record grain crop in 2016 thanks to favourable weather and a weakening rouble currency, which boosted their revenue in the last two years.

"The condition of winter grain is better than a year ago, when it was hit by a dry autumn," Igor Pavensky, an official at rail infrastructure operator Rusagrotrans and one of the leading analysts in Moscow, told Reuters. As of November 9, Russian farmers had sown winter grains on 17.16 million hectares, up from 15.83 million hectares a year ago. They originally planned to increase the area by 6 percent to 17.35 million hectares, the Agriculture Ministry said.

Farmers can sow up to 17.4 million hectares this autumn, according to Pavensky's estimate. In the autumn of 2009, about 17.9 million hectares were sown for the 2010 crop, he added. "Russia's winter grain prospects look not bad so far, excluding the situation in a couple of regions," Dmitry Rylko, head of the IKAR agriculture consultancy, said.

He added that autumn weather had not been key to Russian grains in recent years: a year ago, a dry autumn hit sowings but a mild winter and rainy spring improved their condition. "Plus, during the last mild winters, many farmers in Russia's central regions switched to the grades of grain that had higher productivity and were usually used in the southern regions," he added.

"But this is good as long as winters are mild. If this winter turns out to be harsh, it will become a problem." The Agriculture Ministry does not disclose the share of winter wheat in the total winter grains area. In the previous two years it was at 86-87 percent, according to SovEcon, another consultancy. The condition of winter grains is significantly better than the average of recent years in most of Russia's southern and Volga regions, SovEcon said. It is, however, worse in the Central Black Earth region due to recent coldness, and warmer weather is needed in the coming weeks. The moisture level in soil looks favourable in most of Russia and will support next year's crop, SovEcon added.

14.11.16

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