MOSCOW, Nov 30 (Reuters) – Russia is expected to have another big grain crop in 2017, adding to a record crop this year and increasing pressure on prices, leading agriculture consultancy SovEcon told a conference on Wednesday.
In the first major industry estimate for the 2017 grain crop, SovEcon said Russia could harvest 112.5 million tonnes next year compared with a record crop of 119.5 million tonnes expected this year.
The harvesting in Russia, expected to become the world’s largest wheat exporter in 2016-17 marketing year which runs until June 30, is almost completed but officials are yet to announce the size of the 2016 crop after drying and cleaning.
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This year’s record crop will leave Russia with 38 million tonnes of grain available for export in 2016-17 and very high stocks of 19.6 million tonnes by June 30, 2017, SovEcon said.
For wheat, that will mean a crop of 72.5 million tonnes with 28 million tonnes of exports in 2016-17 and 12.4 million tonnes of stocks by June 30, 2017, it added. The estimate includes market stocks and government stocks.
“For now, these numbers are of a virtual nature but the market will already feel the threat in the spring and, if the (2017) crop prospects are good, that would have a double effect,” said Andrey Sizov, the head of SovEcon.
