The situation on the grain market in 1998

摘要

Russia's 1998 grain harvest totalled some 51.5 million tonnes, down as a result of reduction in growing area and substantial losses from summer drought. The wheat crop was estimated at 25.6 million tonnes, only 57% of that in 1997. There was reckoned to be enough wheat of milling quality to meet domestic requirements if none were exported. Export, however, remained attractive to producers. From August, there was a rapid rise in purchase and wholesale prices of ware grain, linked with the rise in the rate of the US dollar against the rouble. Panic buying by consumers of flour and other storable commodities after the August financial crisis led to retail price rises of 47-54%. Purchase prices in general, however, were significantly below world ones,and export became increasingly attractive after September. On the world market competition sharpened, especially, between the USA and France. Russia was expected to receive 1.7 million and 1 million tonnes of wheat as humanitarian aid from the USA and EU respectively. Possible buyers from Russia were Armenia, Uzbekistan, and Georgia. Several countries of Central and Eastern Europe introduced measures such as import duties and export subsidies to protect domestic production.