December 28 2005, 15:09 APK-Inform

Russian grain exports slowing down

World news agencies said that in November this year Russia's total grain exports were estimated at 1.25 million tonnes, compared with 1.5 and 1.7 million tonnes in October and September respectively.

The continued decline in wheat shipments accounted for a decrease in Russia's total grain exports. However, wheat and barley exports in July - November remained well above last year's pace.

In November, Russia's wheat exports declined to 1.0 million tonnes against 1.3 million tonnes in October. Despite the decline, wheat shipments were twice as much as in November 2004. Total wheat exports from July through November are estimated at 6 million tonnes, 2.1 million tonnes above last season's levels.

Egypt continues to top the list of Russian wheat buyers. Despite failures at Egypt's governmental buyer's (GASC) tenders in October and November, wheat shipments to this country in November were high and pegged at 356,000 tonnes, compared with 432,200 tonnes in October.

In November, wheat deliveries to a number of traditional markets (Algeria, Yemen, Azerbaijan and Georgia) declined. Also, shipments to South Asia (Bangladesh and Pakistan) are drying out. It was partially compensated by high shipments to Tanzania (65,500 tonnes) and entering the UAE market with shipments of 55,000 tonnes.

In contrast to wheat, Russia's November barley shipments increased to 230,000 tonnes, compared with 170,550 tonnes in October. Saudi Arabia, with a purchase of 115,000 tonnes, totally accounted for the increase in November barley exports.

In July-November, barley exports reached 1.0 million tonnes, compared with just 0.4 million tonnes over the same period in 2004/05. Russia's 2005 barley output is officially estimated at 15.8 million tonnes (2004: 17.2 million tonnes). Combined with strong export activity, it supports domestic prices and can make them firmer.