"SovEcon" raises the forecast for wheat production in Russia

The consulting company "SovEcon," specializing in the Black Sea region, reported an improvement in the forecast for the Russian wheat harvest this year by 600,000 tons to 87.8 million tons. According to the company, the forecast adjustment is due to a higher-than-expected harvest in Siberia. "SovEcon believes that an early snowfall is unlikely to significantly affect the harvest, noting that harvesting can continue even with a few centimeters of snow," the company's note says. However, as SovEcon analyst Andrey Sizov adds, Siberia's remoteness from port cities means that the impact of a larger wheat harvest on the global export market will not be immediately apparent. On the Chicago Mercantile Exchange, wheat prices fell by 0.4% at the start of trading.