Russia is poised to boost the planting of oilseeds in the coming year as farmers seek more profitable alternatives to low-margin crops like wheat, according to Dmitry Rylko, head of the IKAR consultancy.
Key Highlights:
Shift in Crop Planting:
The area dedicated to oilseeds could rise by 1 million hectares, potentially reaching 19 million hectares or more. This increase comes as oilseeds have shown better performance in 2024, especially after adverse weather impacted the wheat harvest.
Profitability Concerns:
Rylko emphasized that the profitability of oilseeds is projected to surpass that of grains in 2025, prompting farmers to reconsider their crop choices amidst low global wheat prices and crop losses this year.
Impact on Global Markets:
As the world’s leading wheat exporter, Russia’s decision to reduce wheat planting could significantly influence global agricultural markets. Farmers are expected to shift focus towards more lucrative crops, which could alter supply dynamics.
Crop Condition Warnings:
Recent leaked data from Russia’s state weather agency indicated that 37% of winter crops, primarily wheat, are in poor condition due to inadequate moisture levels. This marks the worst rating for winter crops recorded to date.
Official Forecasts Pending:
The Russian Ministry of Agriculture has yet to release official data regarding the current state of crops or forecasts for the upcoming harvest, leaving uncertainty in the market.