Grain producers in Russia are expecting an increase in prices due to unfavorable crop yields and market stagnation.

In some regions, grain harvesting has already been completed, while in others, it is nearing completion. However, producers are not rushing to sell grain at current prices. Considering the decrease in yield due to unfavorable weather conditions, many farms are not willing to sell wheat at last year's prices.

At the company "Tambovskie Fermy," the winter wheat harvesting has been completed. The company's CEO, Igor Polyakov, reported that the harvest was below average. The cause is unfavorable weather conditions such as frosts, lack of precipitation in spring and summer. Therefore, he does not see a high demand for grain and expects an increase in demand from buyers in November, hoping for price increases compared to the previous year.

In the group of farms "Agrogard," they expect price increases for the current season's produce. The company's CEO, Pavel Tsarev, announced that in some regions, the plan for cereal crops has been significantly exceeded, which will affect revenue dynamics. In the Krasnodar region, barley prices are 6-7% higher than last year, while wheat prices have only just started to rise.

Prices for grain have risen due to increased costs in the Central regions, where yields are lower, Tsarev explained. The cost of grain production has significantly increased, which does not allow for an increase in production profitability. He noted that the company only enters into contracts based on offers that ensure sufficient profitability and hopes for price increases to ensure minimal profit margins.

The agricultural firm "Progress" from the Krasnodar region has already sold part of the grain harvest. However, current prices are low and do not provide acceptable profitability for crop producers. The cost of growing wheat amounted to 11.7 thousand rubles per ton.

The agroholding "Lazarevskoe" continues uninterrupted harvesting of the crop. Kristina Romanovskaya, the head of the holding, notes that there is an increase in grain prices on the market for the 2023 harvest. She also mentioned that the company has the opportunity to choose the optimal time for grain sales.

The agroholding "Steppe" is continuously engaged in agro-trading and grain sales. The company's CEO, Andrey Neduzhko, talks about price volatility in grain. He pointed out that indicative prices for wheat with 12.5% protein have increased and reached $222 per ton for delivery in August. The company has utilized digitization and process automation to optimize costs.

The manager of the exporter "Sea Delivery," Denis Sushkov, notes the stagnation of world markets and the absence of a trend towards rising grain prices. He mentioned possible positive shifts for domestic prices related to the return of the exchange rate of the dollar to the ruble. Currently, prices for wheat with 12.5% protein are at the level of 15.5 thousand rubles per ton.

 

The Ministry of Agriculture reports that the export duty on wheat will be reduced from August 7 to 13. It will amount to 444.4 rubles per ton. Rates for barley and corn exports will remain at zero.

Prices for Russian wheat with 12.5% protein have increased to the level of global markets and reached $222 per ton FOB. Prices for wheat on the domestic market have also changed. They have increased in some regions and decreased in others.

The government has approved the sale of up to 500 thousand tons of wheat from the federal intervention fund. This will help stabilize possible rises in grain and flour prices. The decision will contribute to maintaining a stable situation in the domestic market. Optimal selling prices will be set at exchange auctions.

The President of the Russian Union of Flour Mills and Groats Enterprises, Igor Sviridenko, talks about stabilizing grain and flour prices. He notes that the peak grain prices have already passed, and the cost of flour has decreased after grains.