USDA on Russian wheat exports
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Farm and Ranch June 17, 2011 Russia has said that starting in July it will be lifting its ban on grain exports, mostly wheat. Ukraine has announced a similar move, which means those countries must expect ample supplies this year.
Bange: “I would say there is perhaps a great deal of optimism in those countries which I am not sure we would buy into quite yet.”
Jerry Bange, USDA Outlook Board Chairman.
Bange: “It is still fairly early in the season. And I think basically what the Ukrainians and the Russians are saying is that we are going to try to get back in the export market if we can and we are not going to prohibit that, but the fact of the matter is that crop has a long way to go.”
Back in 2009 Russia produced almost 62 million tons of wheat, exported 18 ½. Then last year drought slashed production to 41 ½ million tons and wheat exports were only four million.
Last week USDA forecast a bit of a comeback but not up to 2009 levels. Bange is pegging the Russian wheat crop at 53 million tons with exports at ten million. But as he says;
Bange: “That crop has a long way to go.”
Even if it returns to the wheat export market Russia may place a levy on shipments, something Ukraine has done to keep food prices under control. Russia’s agriculture and economy ministers are reported to be supporting a proposal for a duty on wheat exports when milling wheat prices reach a certain level. That could help export competitors like the United States.
I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net.
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