IKAR in Mass and Industry Media

Russia’s Domestic Wheat Prices Too High for Exports, Group Says

Bloomberg

2009-08-11 By Maria Kolesnikova

Aug. 11 (Bloomberg) -- Russia’s domestic wheat prices are too high to make exports profitable and overseas sales will likely decline this month, according to Dmitry Rylko, director of the Institute for Agriculture Market Studies.

“The export markets are dormant,” Rylko said in an interview in Moscow today. Russian wheat exports may remain unprofitable for several months until producers lower domestic prices, he said. Wheat futures traded in Chicago have dropped 37 percent in the past year.

Wheat prices in Russia’s agricultural black-earth region started to fall last week because of insufficient storage for the incoming crop, Rylko said. Black-earth covers Belgorod, Voronezh, Lipetsk and Tambov regions.

01.02.10

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