Support The Moscow Times!

Wheat Could Rise 33% As Export Resumes

Domestic wheat prices may rise 33 percent after exports resume next month, according to Pavel Skurikhin, chairman of Siberian Agrarian Holding, which controls 400,000 hectares of land.

Domestic wheat prices are expected to rise to 6,000 rubles ($216) a ton from 4,500 rubles a ton now, Skurikhin said last week.

Russian prices are about 30 percent lower than Chicago Board of Trade futures, the global benchmark. The export ban is scheduled to end July 1.

"We can rely on higher prices to reduce debt leverage and pay off loans that we took for this year's sowing," Skurikhin said.

Siberian Agrarian planted about 170,000 hectares for the 2011 harvest. About 60 percent of the area is for wheat, and the rest is rye, sunflowers, rapeseed, soybeans, barley and oats, he said. Production is estimated at 340,000 tons of grains, up from 322,000 tons before the 2010 drought. The company owns part of the 400,000 hectares and farms the rest under rental agreements for other investors.

Siberian Agrarian has plantings in the Novosibirsk, Altai, Tula, Ulyanovsk and Rostov regions of Russia.

Siberian Agrarian is discussing the sale of one or several grain production units to Russia's state grain trader United Grain to reduce debt, Skurikhin said.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more