Monitoring - Incubator

Russia plans to export 1 million tons of meat abroad this year. The exports have increased to Chinese and African markets. However, the strengthening of the ruble and animal diseases in Europe could pose risks to the plans.

The company "Damate" has been granted the first right in Russia to export turkey meat to Singapore.

According to Rosstat, fuel prices in the Omsk region are below average for Siberia and Russia. Diesel is cheaper than in Tuva, AI-92 gasoline is below the national average, and prices for AI-95 and AI-98 gasoline are also below average.

The export duty on sunflower oil decreases in April to 4568 rubles per ton, on meal - to 939.5 rubles per ton. Price increases are expected, but the situation in the oil and fat sector remains challenging due to the shortage of sunflower seeds. Factories are forced to temporarily stop production due to negative margins.

The "SovEcon" center has reduced its forecast for Russian wheat exports for the 2024/25 season by 1.5 million tons to 40.7 million tons due to low profitability and the strengthening of the ruble. Reserves as of March 1 amount to 11.6 million tons, which is 34% less than a year ago.

It is possible that a weakening ruble and increased demand will force exporters to accelerate exports.

The center "Rusagrotrans" has reduced the forecast for Russia's wheat export to 40-41 million tons due to the decrease in export rates. The export in February amounted to 1.95 million tons, the lowest in five years. Low profitability and declining prices in the global market are the reasons for the decline.

It is planned to launch the "Citron" plant in the Voronezh region for the production of citric acid from corn. This will ensure stable supplies to the Russian market.

Construction started in 2023, and the launch is scheduled for 2025. Investments have been increased from 3 to 10 billion rubles.

Export of wheat from Russia decreased to 1.9 million tons in February, the lowest level in the past five years.

Prices for wheat within the country have risen. Further decrease in export volumes is predicted due to low profitability and demand from exporters.

The potential wheat export for this season is estimated at 42 million tons, a decrease of 1.9 million tons compared to the previous season.

The company ProZerno has announced that the prices for rye have increased from 8 to 15.1 thousand rubles per ton. Wholesale prices have risen by 70%, reaching 11,223 rubles per ton. The reduction in rye cultivation due to high costs and low profits is causing concern among specialists.

It is possible that rye will become a niche product due to insufficient demand and high production costs.

Analysts at SovEcon have reduced their forecast for Russian wheat exports for the current season to 42.2 million tonnes due to low profitability for exporters. For the next season, they expect export growth to reach 38.9 million tonnes. The wheat export quota may not have been fully utilized as traders aim to improve margins. SovEcon has warned of a slowdown in export pace due to limited supply, a strong ruble, and negative margins.

Russia increased its exports of mineral products and metals in 2024, while the export of agricultural products decreased. The total export amounted to 433.9 billion dollars, with imports at 283 billion. Asia became Russia's main partner. The export of agricultural products remained at the same level as in 2023, despite the instability of global prices.

The grain harvest is expected to reach 120 million tons. Weather conditions influence the situation, but forecasts remain optimistic.

Prices for resources for farmers are increasing, costs for spring work will reach 1 trillion rubles. Russia is capable of producing 200 million tons of grain, but plans to reduce the volume to 130 million tons. Inconsistent crop yield forecasts range from 122.9 to 125 million tons.

Production of commercial milk in Russia is expected to reach 26.3 million tons by 2025. Forecasts for the current year are conservative, showing a slight growth. By 2030, production could increase to 31.3 million tons.

Exports are expected to increase by 44%, while imports are projected to decrease by 18%.