Russian farmers rush to sell their grain

Russian farmers appear to be changing their habit of holding on to excess grain for better times amid low world prices, as high interest rates make access to cash and deposits in domestic banks attractive, analysts said. The Russian central bank raised its key interest rate to 21% last month, the highest level in more than 20 years. Moscow is battling inflation in an overheated economy. Many banks offer short-term deposits with interest rates of up to 25%. "It's easier to sell the grain immediately and put it in the bank with an interest rate of over 20% and forget about the risk of grain price movements," said Dmitry Rylko, head of the IKAR agricultural consulting company. "Nobody holds anything back here, on the contrary. This year, we have no desire to stick to the crop, which is why we had such a large export," he added. Analysts say further sharp increases in wheat export duties in recent weeks have also overridden the benefits of holding stocks. While farmers in many regions ...