Inside: Grains & Raw Material
Russian grain exports back to full steam
Last week, 914.000 tons of wheat were exported from Russia. It means that the Russian export engine is running at full speed again.
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Choose the subscription that suits youDemand for Russian wheat continues well. It turned out that the GASC, the main purchasing body in Egypt, purchased 120.000 tons of wheat in a tender (delivery March/April). The agency paid $223,50 per ton, $5 per ton more than the transaction earlier this month.
This picture is in line with the fact that prices for Russian wheat have risen sharply in recent weeks. In doing so, they follow the prices on the CBoT in Chicago, which have already risen.
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From week 4 onwards, the CBoT showed an increase in the wheat price.
Russian wheat exports are currently almost 40% higher than in the same period last year. Not only wheat exports are high, but expectations for total grain exports have also reached a record level of 45 million tons. Russian grain sellers will have to sell 700.000 tons of grain every week (to reach that level).
Huge harvest expected
A huge grain harvest is again expected in the country for 2018. The Russian Ministry of Agriculture expects that at least 110 million tons of grain will be harvested. However, this is lower than last year's 134 million tons.
The Russian government stimulates grain exports by, for example, providing subsidies on transport. It was also recently announced that taxes for Russian grain traders will be reduced.