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Russia kept increasing grain and flour imports in July-September this year. Wheat imports nearly doubled in September to 173,400 tonnes from 94,300 tonnes in August and 58,300 tonnes in July. Last season wheat imports dropped to 4,990 tonnes in September from 150,070 tonnes in July. Practically all wheat this year was imported from Kazakhstan.
The unusual increase in wheat imports reflected reduced grain stocks and lowered crop output in eastern areas.
It is very likely that Russia's import demand will decline from October with the completion of the harvest in the URLs and Siberia. Russia's maize imports in 2003/04 (October-September) surged to 0.46 million tonnes compared with 0.1 million tonnes in 2002/03 (Table 2).
A drop in the 2003 wheat production especially feed wheat, which is the main feed grain for the poultry sector, caused the sharp increase in maize imports. In 2004/05, Russia's maize imports are likely to decline, reflecting a better grain output, particularly of wheat and maize.
In contrast to maize, Russia's import demand for rye and rice in 2004/05 is seen firm. A drop in the 2004 rye production, coupled with reduced carry-over stocks, has resulted in record high domestic prices, which are now in the range of 3,900-4,000 roubles ($136-$139.5) per tonne EXW.
In September, Ukraine delivered 1,900 tonnes of rye to Russia. The first shipments of German rye started arriving at St Petersburg port in October. Russia's total rye imports in 2004/05 may reach 100,000 tonnes.
Russia's import demand for rice in 2004/05 may recover to 0.5 million tonnes against 0.4 million tonnes last season due to reduced domestic supplies.

Copyright Reuters, 2004

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