Grain Production 2012 Estimated Low in Russia

Grain production in Russia for 2012 is estimated to be around 85 million tons lower than last years harvest of 94.2 million tons, lower grain harvest can be attributed to dry weather conditions in the country which delayed the sowing of wheat crops. As per analysts, the production of may drop further to 50 million tons from earlier estimates of 53 million tons for 2012.

According a USDA report, Russia’s wheat production may fall to 53 million metric tons in the year starting July 1 from an estimated 56.2 million tons in the current period. In Chicago Board of Trade (CBOT), wheat for July delivery is trading at 711 6/8 cents per bushel and in India's National Commodity and Derivatives Exchange (NCDEX), the commodity traded up 0.26% to Rs 1154 per qtl on 26th June at 15:15 IST.

Wheat production in Russia likely to affect the price of the commodity globally as the country is the fourth largest producer of wheat in the worlds.

Russia's grain carryover stock amount to 51 million tons while domestic consumption for the next agricultural year is estimated at 72.7 million tons. And also the country would be exporting around 20 million tons of grains during the period.