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The situation on the market of rye and rye flour
The new grain season 2019/20 food rye walked with historically low reserves and high prices.
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This situation was caused by low gross yield in 2018, which amounted to 1.92 million tonnes, down from 2.55 million tonnes in the previous year. In addition, the export of this culture in the 2018/19 season was a record, reaching 280 thousand tons compared to 69.5 thousand tons in the previous year.

Figure 1

 

Stocks of rye in food production and processing organizations as of July 1 and the average price of the economic regions

 

Stocks of rye

 

Source: Rosstat, IKAR

 

In the end, the price of rye flour has grown throughout the greater part of the flour 2018/19 season. The situation was aggravated by the fact that Belarus, a traditional supplier of cheap rye flour in the Russian market, sharply reduced deliveries because of the poor harvest of rye in 2018

Figure 2

 

Average wholesale prices of rye flour in economic districts, RUB/t with VAT

 

Prices on rye flour

 

Source: IKAR

 

It was expected that favorable for agricultural producers market the rye will be a stimulus for the expansion of its crops in 2019, But this did not happen. The area under this crop in the current year amounted to 872 thousand hectares compared to 980 thousand hectares in 2018 So wait for the low price of rye and rye flour in the new season is unlikely.



Translated by service "Yandex.Translation"
Источники: ИКАР
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