Frustrated expectations: why grain producers in Russia will not receive excess profits again

The new grain season will bring, although smaller than last year, but still a considerable harvest. Exports also promise to be quite active. However, the consistently high results of the industry do not yet inspire farmers. Hopes for rising prices are fading, and grains will likely again not show the desired profitability. The logic “smaller harvest means higher prices” may not work in the new grain season (started on July 1). Not long ago, the head of the Ministry of Agriculture, Oksana Lut, said that her department expects prices to rise both on the global and domestic markets, including due to a reduction in supply. But so far there have been no significant positive dynamics in the grain market, and there are no prospects for an improvement in the price environment in the future, say experts interviewed by Forbes. The completed grain season 2023/2024 can be called positive in terms of yield and export volumes, experts say. “The Russian agro-industrial complex continues to ...