IKAR in Mass and Industry Media

Russia's IKAR ups wheat crop forecast despite drought

Reuters

MOSCOW, May 20 (Reuters) - Russia's Institute for Agricultural Market Studies (IKAR) raised its 2013 wheat crop forecast by 2.5 percent due to a bigger-than-expected harvest in its largest growing region and despite hot and dry weather in other regions.

Russia, traditionally the world's third largest wheat exporter, is targeting a good harvest this year after it lost one-third of last year's wheat crop to drought during the second half of May and early June.

"The wheat harvest in Krasnodar is good. The situation with winter wheat remains satisfactory there," Dmitry Rylko, the head of IKAR, told Reuters. The region is Russia's largest wheat growing area.

IKAR raised its 2013 wheat harvest forecast to 53.8 million tonnes from a previously expected 52.5 million tonnes. The grain crop estimate was raised 2 percent to 92 million tonnes.

The upgrade is rare in the current market as the country's optimistic expectations for the grain crop were being threatened by persisting dry and hot weather in Russia's key agricultural regions.

IKAR may cut its forecast if there is a lack of rain in parts of the Southern and Central Federal Districts over the next week or two, Rylko added.

Last year Russia harvested 71 million tonnes of grain, including 38 million tonnes of wheat.

20.05.13

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