Some of Russia’s top corn consumers are planning to import the grain from countries including the United States, the U.S. Grains Council said, after the worst drought in at least half a century parched the nation’s crops, reported «Kazakh-Zerno» IA with reference to the «Bloomberg«.
“While the price of grain in Russia is high, it is expected to go higher, so no one is selling,” Alex Kholopov, a consultant at the council, said on its website. “This leaves many Russian animal farmers in a panic and fearful.”
Corn has jumped 24 percent in Chicago since June 29 on speculation demand will increase from China and as wheat soared because of the Russian drought. World stockpiles of coarse grains, including corn, sorghum, barley, oats and rye, will drop 8.4 percent before next year’s harvest to the lowest level since 2008, according to the U.S. Department of Agriculture.
Drought in Ukraine, the fourth-largest corn exporter in the 2009-2010 season, and Russia may help the U.S. increase its market share in countries such as Saudi Arabia and boost shipments of sorghum to the Middle East, Joe O’Brien, the council’s regional director for the area, said on its website.
Russia will probably double corn imports to 300,000 metric tons in 2010-2011 from 150,000 tons the previous year, while exports may slump to 25,000 tons from 400,000 tons, according USDA estimates.