Success of Russian corn is not long-lasting

11.10.2017

As expected, the 2016/17 corn season in Russia ended with new records. Russian exporters supplied over 5.64 MMT of corn to foreign markets this past marketing year that is 24% more than a year ago. So, corn exports from the country hit an all-time high.

In MY 2016/17, Russian exporters managed to boost corn supplies to their traditional end markets and successfully enter new ones.

With regard to the outlook for Russian corn in the new marketing year 2017/18, it is no longer as optimistic as back in September, UkrAgroConsult’s analysts report.

The corn harvest in Russia is almost 40% complete, already making it possible to see a more realistic crop picture. The dry, hot weather in the summer of 2017 badly affected corn yield in Russia this year, and even the 7% expansion of planted acreage is unlikely to offset this adverse factor. The current average corn yield in Russia is down 9-11% from last year.

This situation already suggests that Russia’s corn crop is not likely to set a new record. It also becomes obvious that Russia will most likely not feature another peak in corn exports.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

UkrAgroConsult

Readers choice: TOP-5 articles of the month by UkrAgroConsult