The Agricultural Ministry of Russia indicated that the country’s volume of grain supplies will reach 103 million tons by June 2014. The total number is comprised of the expected harvest yield of 90 million tons, as well as imported grains and reserves.

The expected demand for grain inside the country has been forecasted to reach 68 million tons, about half of which (35 million tons) is destined for animal feed. Another 20 million tons of grain is available for exports. In 2013, grain exports amounted to 15.7 million tons. Other Russian agricultural commodities sent abroad are wheat, the shipments of which stand at 14 million tons; barley, the exports of which are at 2.4 million tons; and corn, the deliveries of which to markets outside of Russia reach 2.8 million tons.

Russia’s reserves of over 14 million tons of grain are expected to provide stability to the grain market from this year’s harvest season to the next year’s season, the Agricultural Ministry assured. Nikolai Fedorov, the Agricultural Minister, also said that the 90 million tons figure as the measure of the harvest expected could well be exceeded. While grain is the dominant crop for the entire agricultural sector, corn growing operations are also expected to bring in a high yield. Corn is less expensive and more efficient as feed. Rapeseed and sunflowers are expected to turn out high crops, resulting in higher amounts of sunflower and rapeseed oil production.

Sugar beets production in Russia during the next year is expected to be very high as well. In 2013, the sugar beets harvest amounted to 44 tons per hectare. In 2014, the sugar beets harvest is expected to stand at 39 million tons. For comparison, in France, sugar beets production amounts to 33 million tons, and in the U.S. to 32 million tons.

Due to sharp price drops on food and feed grain in Siberia by as much as 40 to 45 percent, the state had to intervene in the market with a purchasing program for the crops as of October 15. The prices have been rising since that time by two to three percent every week. State purchasing may expand to other territories of the Russian Federation depending on price variations, according to the Agricultural Ministry. The state has already purchased 398,700 tons of grain, spending over RUR2 billion.

Grain prices in the European part of Russian dropped by 25 to 30 percent. By November 25, prices for food grain recovered 16 percent as a consequence of exports and the government’s support for the industry. Feed grain prices rose four percent, and were expected to climb at the rate of around one percent per week. According to the Ministry of Agriculture’s announcement, as long as weekly price increases stay from 0.5 to 1.5 percent, the industry does not need state regulation.