A report from the US Department of Agriculture (USDA) says oilseed production in Russia is expected to increase to 21.8 million tonnes in 2019/20 – an increase of 14% from the previous year, the report said. World Grain .
The May 1 report from the Global Agricultural Information Network (GAIN) said the increase is due to the increase in planted area and good weather conditions.
Exports in 2019/20 are forecast to be higher than the previous year, with an increase of 9% to 2.23M tonnes, the USDA said.
Production and exports are forecast to increase further in 2020/21, but the USDA said the projection for production and trade is tentative due to the COVID-19 pandemic.
“The Russian Ministry of Agriculture has previously stated its intention to expand oilseed acreage to increase production and exports,” the USDA said.
“However, the temporary ban on soybean and sunflower exports in the wake of the COVID-19 pandemic will certainly restrict exports, particularly sunflower, as soybean exports were relatively small in 2019/20.”
The Russian oilseed sector approached full capacity in 2019/20 due to increased production, with the industry reaching 80% of processing capacity.
“The processing sector is falling below capacity in the Volga region, so it has not been possible to accommodate further expansion in production or reduction in exports,” the USDA said.
Source: OFI Magazine
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