May 4, 2000

EARLY SPRING PLANTING IN RUSSIA PROCEEDING ON SCHEDULE

According to a report from the U.S. agricultural office in Moscow, Russian grain production for 2000/01 will benefit from favorable weather and a slight increase in fertilizer and chemical availability. The report emphasized, however, that severe capital shortages persist, and that the modest improvements do not necessarily signal a reversal of fortune for the beleaguered agricultural sector. At the outset of the sowing campaign, Russian agricultural officials issued warnings regarding scarce fuel supplies (see April 20 update), and recent comments from officials, as cited by the Interfax new agency, indicate that fuel shortages continue to hamper sowing progress. Planting-progress figures released by the Ministry of Agriculture, however, suggest that early-season sowing is proceeding at a normal rate. As of April 25, State farms had planted spring grains on 4.1 million hectares, or approximately 12 percent of the total forecast spring-grain area. This pace is nearly identical -- in terms of percentage of final spring-grain area -- to five of the past seven years.

By May 1, winter grains had reached the jointing (stem-extension) stage throughout the FSU winter-wheat region, similar to last year. Despite a recent brief cold snap which resulted in no significant damage to grain crops, weather has been generally favorable for winter grains.

The USDA will release official estimates of worldwide 2000/01 grain production on May 12.

Current USDA area and production estimates for the republics of the former Soviet Union.

For more information, contact Mark Lindeman with the Production Estimates and Crop Assessment Division on (202) 720-0888.