Russian Wheat Prices Fall as Grain Crop Hits 5.5 Million Tons

Russia’s fourth-grade milling wheat prices fell 16 percent this week, the biggest drop of 2013, as farmers harvest the new crop more quickly than they did in the year-earlier period.

Fourth-grade milling wheat, the main export commodity among Russian cereals, fell to 7,625 rubles ($232), according to data on the website of SovEcon, a Moscow-based researcher that monitors average weekly prices in the European part of the country.

Farmers harvested 5.5 million metric tons of grain and legumes in the year-to-date, which is 1.9 million tons more than the year-earlier period, the Agriculture Ministry said today on its website. Yields reached 3.81 tons a hectare (2.47 acres) compared with 2.76 tons a hectare a year earlier, according to the data.

About 3.9 million tons of wheat was harvested, up from 1.8 million tons a year earlier, the ministry said. The barley harvest reached 1.3 million tons, compared with 340,900 tons.

“Average prices will decline even more when the old crop is finished,” Andrei Sizov Jr., SovEcon’s managing director, said by phone.

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