NEWS
Russia Grain Trader Keeps Export Plans
Fri Jul 30, 2010 08:33 AM CDT

MOSCOW (Reuters) -- Russian state grain trader United Grain Company still aims to export no less than 1 million tonnes of grain this year, it said on Friday, despite a severe drought that has damaged crops.

UGC said it exported 300,000 tonnes of grain in May-July via Russia's biggest Black Sea port of Novorossiisk, including 81,500 tonnes in May, 65,500 tonnes in June and 151,500 tonnes in July.

The grain was shipped to Egypt, Jordan, Yemen and Saudi Arabia, UGC said in a statement.

In April, the Russian government allowed UGC to sell up to 1 million tonnes of grain this year, so permitting part of its 9.5 million tonne stocks to be exported.

UGC has repeatedly said that it exported grain from sources other than the government stocks.

Analysts have said that Russia, which has been hit by the worst drought in decades, will use most of its intervention grain stocks domestically rather than export them.

The government has already announced plans to sell some 3 million tonnes of grain, mainly feed grain, to domestic animal breeders and flour millers.

The Agriculture ministry planned to start grain sales on Aug. 4, but later decided to delay intervention auctions examining a possibility to distribute part of the grain without tenders between regions worst hit by the drought.

(AG)

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