MOSCOW, RUSSIA — Russia’s agricultural ministry held a meeting on Aug. 17 with grain exporters and is reportedly considering curbing 2018-19 exports once they reach 30 million tonnes following a request from livestock farmers who are complaining about the rising cost of animal feed, according to a report by Reuters.
Although traders said putting a cap on grain exports was discussed, the ministry denied that claim.
“Working questions about export volumes were discussed at the meeting,” the ministry said.
Hot and dry weather this summer in Russia has taken its toll on the wheat crop as the USDA has reduced its wheat production forecast to 68 million tonnes from 85 million tonnes.
Russia has become one of the world’s largest exporters of grain and ranks No. 1 in wheat exports in 2017-18 at a projected 42 million tonnes, according to the USDA. The next largest exporter is the United States at 24.5 million tonnes.
The United States and European Union, which ranks third at 23.5 million tonnes, would likely benefit the most if Russia decides to curb exports in the 2018-19 crop year.
In recent years, Russia has become a leading exporter to the Middle East, Africa and Asia.