We wrote on farmer.pl following analyst Mirosław Marciniak that Russia is playing a key role in the so-called wheather market, i.e. a market dependent on the weather. On June 6, during the Polish Grain Day, he told us that due to bad weather, there is drought in part of the country and excess rainfall in others. This had an impact on the prices of agricultural raw materials. Russia is the largest wheat exporter in the world and has the largest market impact. It is worth emphasizing that the forecast for the Russian wheat harvest was reduced by 10-11 million tons in a short period of time due to unfavorable weather conditions. Will it be worse than expected? There are many indications of this, since a state of emergency has been introduced in a key district.
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Drought in Russia
– A state of emergency has been introduced in the Rostov Oblast due to prolonged soil drought – wrote the region's governor, Vasily Golubev, in his telegram. He added that this decision was made immediately, on June 11 at 6 p.m. According to him, as a result of long-term soil drought in the Rostov Oblast, significant areas of agricultural crops were lost and destroyed.
Earlier, on June 4, a state of heightened alert was introduced in the same district. Now this level has been raised.
Slide from the InfoGrain presentation
Why is there a state of emergency?
Reuters also writes about the case. It turns out that the emergency is intended to address potential crop losses, estimated by Gołubiew at up to 30%. Earlier, the region struggled with May frosts.
– The Russian Ministry of Agriculture has so far estimated crop losses caused by May frosts at approximately 1 million hectares, or 1.2%. total sown area for the 2024 harvest, and a further 700,000 hectares were affected. The ministry claims that most of the frozen crops have been replanted – we read on Reuters.
Previously, it was declared that due to frosts in Russia, losses in winter cereals amount to 15-30%, depending on the region.
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