Chinese Restrictions Block Mass Deliveries of Russian Grains
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The Grain sowing campaign in Russia is entering the final stage, according to the Ministry of Agriculture of the Russian Federation. As of June 5, in the country, spring sowing was carried out on an area of 50.7 million hectares, or 92% of the forecast. The pace of work exceeds last year; in 2022, 49.1 million hectares were sown on the same date.
Spring Grain crops were sown on 29 million hectares or 96.7% of the forecast (in 2022 – 27.2 million hectares), including spring Wheat – on 13.5 million hectares, barley – on 7 million hectares, corn – on 2.5 million hectares, rice – on 159.4 thousand hectares. Sunflower is sown on an area of 9.2 million hectares, rapeseed – on 1.5 million hectares, and soybeans – on 3.2 million hectares. “Currently, fieldwork is being carried out regularly, and farmers are provided with everything necessary for the successful completion of the sowing campaign,” the ministry said in a statement.
Hot weather, which has recently been in the Urals, the Volga region, and Siberia, has become a real threat to the future harvest, especially Grain, say experts. According to the press service of the Ministry of Agriculture of the Chelyabinsk region, in areas in the south of the region, where there are large areas under crops, agriculture is already oppressed due to the hot weather.
There are practically no moisture reserves in the soil and no precipitation. All this, of course, affects the crops negatively. If the heat and the lack of rain continue, then drought and the death of crops are possible. If the temperature drops shortly and it starts to rain, the situation may return to normal. But everything will depend on how much the temperature drops and how much precipitation falls.
The Ministry of Agriculture of the Kemerovo region is also concerned about the lack of moisture, which may adversely affect the gross yield and quality of the crop. Currently, specialists are going around the fields and taking samples for the soil’s residual moisture. Based on the survey results, a conclusion will be made, and the ministry said an assessment of the state of crops will be given.
Sino-Russian Grain Trade
The import of Russian products to China is growing, but one exception is Wheat. Beijing’s purchases of electricity and aluminum from Russia have risen sharply amid reduced supplies to the West. However, the volume of Wheat supplies, despite the growth of Grain imports to China, remains at the same level.
China’s total Wheat imports are up more than 60% year-on-year to about 6 million tons in the first four months of this year. Of these, Russia supplied only 30 thousand tons (0.5%), the publication claims. Australia (59.7%) is China’s largest exporter, followed by Canada (18.3%).
Strict phytosanitary rules and transport difficulties have become the main problems for Russian Grain. This information is confirmed by market participants. “Despite the high potential, the supply of Russian Grain to China is still at an embryonic level. This season, we delivered over 600 thousand tons in the border trade mode. Indeed, phytosanitary restrictions on the part of China are hindering mass deliveries,” Eduard Zernin, Chairman of the board of the Union of Grain Exporters.
According to AgFlow data, Russia exported 11.6 million tons of Wheat in Jan-Apr 2023. In April, the top markets were Turkey (1.1 million tons), Egypt (0.3 million tons), Israel (0.1 million tons), Lebanon (0.1 million tons), Algeria (0.1 million tons), and Iran (0.1 million tons).
Other sources: ZERNO
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