Russia Harvest: Grain Yields up 6 Centners/Ha
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According to the Ministry of Agriculture of the Russian Federation, 157.7 million tons of cereals and legumes were harvested as of December 7, 2022, including 105.3 million tons of Wheat, 24.5 million tons of Barley, and 11.3 million tons of corn. Cereals and leguminous crops were harvested from 46 million hectares (45.3 million hectares in 2021), and the yield was 33.9 centners per hectare (27.9 centners per hectare in 2021).
Wheat has been threshed from 29.2 million hectares (27.8 million hectares in 2021) with a yield of 36 centners per hectare (28.4 centners per hectare in 2021). Barley was harvested from 7.9 million hectares (at the level of 2021), with a yield of 30.9 centners per hectare (24.1 centners per hectare in 2021). Corn for Grain was threshed from 1.9 million hectares (2.8 million hectares in 2021), yielding 59.5 centners per hectare (55.6 centners per hectare).
Along with the advantages of these high yields, there are also disadvantages, according to the President of the Russian Grain Union (RZS), Arkady Zlochevsky. Among them is the reduction of prices to the level of cost. “For this reason, the peasants are not ready to sell and transport Grain to warehouses, elevators, and store in barns, waiting for better times,” he noted.
For other crops, rice was harvested from 167.9 thousand hectares (186.7 thousand hectares in 2021) with a volume of 944.7 thousand tons (1.2 million tons), and the yield was 56.3 centners per hectare (63.5 centners per hectare). Sunflower seeds were threshed from 7.5 million hectares (9.6 million hectares), with a volume of 13.7 million tons (15.7 million tons) and a yield of 18.3 centners per hectare (16.3 centners per hectare). Soybeans were threshed from 3.2 million hectares (3 million hectares), with crop of 6.1 million tons (4.9 million tons), and the yield was 18.9 centners per hectare (16.5 centners per hectare).
The gross Wheat harvest in Russia in 2023 may decrease by 15.7% compared to the level of 2022, to 84.8 million tons, according to the analytical center SovEcon. The total area under Wheat in 2023 maybe 29.1 million hectares, which is 0.4 million hectares less than in 2022. The estimate of sown areas for winter crops is 18.8 million hectares against 19.5 million hectares a year earlier. SovEcon expects Russia to significantly reduce the area of winter Grains amid heavy rainfall in recent weeks and historically low domestic Wheat prices on the back of a strong ruble and export duty.
At the beginning of October, the analytical center of Rusagrotrans reported that the winter Wheat planted area for the 2023 crop could fall by 0.5 million hectares compared to last year to a five-year low of 16.5 million hectares. The reduction is mainly possible in the central regions, although it is partially offset by the growth of crops in the Volga region.
Russian Grain Export
Support for producers could be exports. But shipments to foreign markets are slow, the Union President said. From July 1 to October 15, 16.8 million tons of Grain were shipped for export, which is 13% less than a year ago. However, in October, the pace of exports began to accelerate: in the first half of the month, 2.45 million tons were shipped, which is 75% more than in the same period last year. According to AgFlow data, Russia exported 33.8 million tons of Wheat in 2021-2022, followed by Barley (2.6 million tons) and Corn (2.4 million tons).
Export prices for Russian Wheat with 12.5% protein for December delivery remained stable at $313-317 per ton. Purchase prices in deep-water ports remained at the same levels of 14.5-14.7 thousand rubles per ton without VAT, at low water prices increased by an average of 200 rubles up to 12.7 thousand rubles/t without VAT.
Other sources: ZERNO
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