Dry weather in southern Russia, the world’s third-biggest wheat exporter, will curb development of the grain, according to RZ Agro Holding Ltd.
Wheat crop losses of between 15 percent to 30 percent may be seen in the Rostov, Krasnodar and Stavropol regions, Stephane Mac Farlane, chief executive officer at the company, said today in an interview. The three regions accounted for about 30 percent of Russia’s total crop last year after they harvested 27.3 million metric tons of grains, according to state statistics.
“There is not much improvement to see,” Mac Farlane said. “They don’t even need any rain now.” Rain in the three regions can hurt the quality of wheat at its current stage of development, which requires dry weather before harvesting, according to Mac Farlane.
Wheat futures gained 1.7 percent to $6.235 a bushel on the Chicago Board of Trade by 6:01 p.m. London time.
The company, owned by two Louis Dreyfus family members and billionaire Vladimir Evtushenkov’s AFK Sistema, is keeping its wheat crop estimate for the country at 54 million metric tons for the season that starts July 1 before drying and cleaning, said Mac Farlane. Last year’s wheat crop in Russia was 56.2 million tons, according to state statistics data.
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