Drought in Southern Russia may impact grain prices in the new season, said the Deputy Minister of Agriculture.

In the new season, grain prices may change due to drought, which has led to a loss of part of the harvest in the South of Russia.

Such a statement was made by the Deputy Minister of Agriculture Andrey Razin at the "All-Russian Field Day 2024," as reported by "RBC Rostov". The Ministry of Agriculture's forecast for production volume remains unchanged - 132 million tons.

Razin emphasized that measures will be taken to ensure the specified indicator.

He believes that Russia will be able to achieve the planned level of harvest collection, including in other regions of the country. Every year, various natural and climatic anomalies occur in different parts of Russia, however, through the use of modern agricultural technologies and compliance with technological processes, risks can be minimized, noted the Deputy Minister.

In early June, Elena Fastova, Deputy Minister of Agriculture, told "Rossiyskaya Gazeta" that the profitability of agricultural production in 2024 may remain at the level of 2023, despite natural disasters. Last year, the profitability even slightly increased in animal husbandry.

However, some enterprises that did not have time to replant frost-damaged fields or did not insure their crops may face a decrease in profitability, Fastova noted.

The analytical center of Rusagrotrans recently reported that last week export prices for Russian wheat continued to decrease. The price for July delivery was $231.5/ton FOB, which is $2.5 lower than the previous week and $23.5/ton lower than at the beginning of June, corresponding to the level of last year.

However, prices for wheat with 12.5% protein in deep-water ports started to rise after a two-week decline and reached the level of 16.5-17 thousand rubles/ton without VAT. Last year at this time, prices were 14.8 thousand rubles/ton. On the domestic market, wheat prices weakened in the South and the Volga region, while in the Center and Siberia, prices remained at the level of the previous week.