FeedDinner 2018

LONDON (Dow Jones)--Russian port capacity for grain has increased to around 25 million metric tons due to the development and upgrading of infrastructure, the U.S. Department of Agriculture's Moscow attache said Wednesday, but warned that transportation and logistical problems continue to be a major issue in the country.

Russian grain exports are able to exceed this estimated yearly port capacity through direct loading of railway wagons into ships, the USDA said, as well as using ports from other countries.

However, it warned that competition with Ukrainian and Kazakh grain traders in the deep water ports of Ukraine and the ports of Baltic countries is very high.

Another constraint on Russian exports is the speed and capacity of grain intake, the USDA said, as poor management of railway logistics, high cost of transportation from Siberian regions and competition from Kazakhstan for grain cars results in bottlenecks.

Bad weather can also delay ship loading, the USDA said, citing wind in Rostov which can reduce the river draft and halt exports for a number of days

FeedDinner 2018