Nov. 7 (Bloomberg) -- Russia, the world’s third-biggest wheat shipper last season, doesn’t need to curb grain exports and state stockpile sales are sufficient to regulate the local market, Nikolai Fedorov, the agriculture minister said.
Stockpile sales began last month to keep domestic prices from rising too much after drought damaged the grain harvest, causing it to fall by 24 percent this year, according to ministry data. The country banned exports in August 2010 for 10 months following the worst drought in at least 50 years.
Russia has sold 313,449 tons of milling wheat from silos in Siberia and the country’s Far East since Oct. 23 in order to reduce domestic grain prices which rose due to crop damage.
Stock sales from silos in the European part of the country are unlikely to start before 2013, according to the statement, citing Fedorov.
Farmers harvested 72.9 million tons of grain before drying and cleaning from 98.5 percent of the sown area to date, according to the ministry data.
U.S. Department of Agriculture’s foreign service in Moscow raised its estimate of Russia’s wheat exports to 10 million tons on Oct. 31 from its previous estimate of 8 million tons. That compares with 22 million tons last season, the USDA’s unit said.
Wheat for December delivery rose 0.3 percent to $8.7975 a bushel on the Chicago Board of Trade by 6:23 p.m. Moscow time. It’s advanced 35 percent this year.
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