Russian grain exports: so far only a warning, but informal curbs can pop up any time if record pace doesn’t slow.
MOSCOW, Oct 3 (Reuters) – Russia’s agriculture safety watchdog has no immediate plans to suspend the operation of grain loading points in Black Sea ports near the city of Krasnodar, a regional office of the watchdog was quoted as saying by RIA news agency on Wednesday.
Chicago wheat prices rose on Wednesday after the watchdog said on Tuesday it could temporarily suspend operations of 30 inland grain loading points in two of Russia’s top grain exporting regions – Krasnodar and Rostov. (Full Story) (Full Story)
The watchdog is currently analysing the condition of grain loading points in the Black Sea ports of Novorossiisk, Yeisk, Temryuk and Taman, but has no plans to close them at the moment, its regional office told RIA.
«The survey of all the sites is underway, and an analysis will be prepared early next week … This is not about suspension of these points or limiting exports. Their condition is being analysed now,» the regional office added.
These checks are a part of the watchdog’s efforts to get traders to pay more attention to the quality of grain in their supplies after complaints from major buyers about falling crop standards.
The watchdog beefed up quality controls on grain exports in mid-September, adding the more stringent checks were not aimed at limiting grain export. Along with a stronger rouble currency, this measure has already slowed Russian grain exports. (Full Story)
The checks were widely criticised by some traders who treat them as an attempt to slow exports with informal curbs. But any effect from these checks on actual exports is likely to be limited, the SovEcon agriculture consultancy said.
«We believe that this uncertainty may slightly lower exports volumes but still doubt that this is a federal campaign to stop exports,» SovEcon said.
The work of operators of grain loading points can be suspended only by a court decision, a source, familiar with the law, told Reuters previously.
