Russia is gaining a foothold in new markets as a reliable grain supplier

Published 2023년 6월 1일

Tridge summary

Despite sanctions, Russia has continued to fulfill its grain supply obligations, becoming a reliable supplier and increasing its wheat export prices to match European levels. In May, Russia saw a significant increase in wheat exports to several countries, including Turkey, Egypt, Yemen, Brazil, Bangladesh, Oman, Mexico, Mozambique, Tunisia, Senegal, Rwanda, Algeria, Tanzania, and Israel. The country's grain harvest is expected to decrease in the next agricultural year, which may lead to an increase in wheat prices. Additionally, Russia has implemented a flexible export duty on wheat, corn, and barley since June 2021, with base prices increasing as of June 1, 2023, to reduce ruble duty and increase the price competitiveness of its wheat.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Russia, despite the sanctions imposed last year, continues to fulfill its obligations as a reliable supplier of grain, thanks to this, gaining a foothold in new markets, Russian wheat has already ceased to be traded at a discount to European wheat, Elena Tyurina, director of the analytics department of the Russian Grain Union (RGU), told RIA Novosti. "We have to export, based on the quota (for grain exports of 25.5 million tons - ed.), about 3 million tons of wheat. Exports this season (from July 1, 2022 to June 30, 2023 - ed.) may amount to about 61-61.5 million tons of grain, including 52 million tons of wheat," Tyurina believes, drawing attention to very active shipments in the spring, the highest in six years. For example, according to the results of May, the Russian Federation supplied 4.9 million tons of wheat to foreign markets, in April - 5 million, in March - 5.2 million tons: according to Tyurina, active demand comes from both regular buyers and those countries where ...

Source: Zol