The Russian flour market-2020 is on the price swing

Published 2021년 1월 8일

Tridge summary

The Russian flour market experienced price fluctuations in 2020 due to increased domestic demand, high global quotes, and ruble depreciation. The growth in prices for wheat and rye, coupled with the anticipation of the second wheat harvest and a high rye harvest, led to significant price increases for flour, cereals, and other essential goods. The government introduced subsidies to millers to offset the high grain purchase prices. Despite the high price level, Russian wheat flour exports decreased, while wheat bran exports increased, with Turkey being the main buyer.

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Original content

The flour market in Russia was on a price swing last year. They were rocked by both the growth of domestic demand amid the spread of the coronavirus, and high world quotes, as well as the depreciation of the ruble. This conclusion follows from the monitoring of the Institute for Agricultural Market Studies (IKAR). Moreover, in 2020, the growth in prices for wheat, and then for rye, took place in the conditions of expectation of the second wheat harvest in the history of Russia and a high rye harvest. According to Rosstat, 85.9 million tons of wheat were harvested, rye - 2.4 million tons. HISTORICAL HIGHLIGHTS According to IKAR, last spring, prices for flour, as well as for cereals and other essential goods, rose significantly. The demand in retail chains for packaged wheat flour and even more for pasta and other shelf-stable products has been extremely strong due to the spread of the coronavirus. According to the results of March-May, the use of flour for the production of pasta ...

Source: Agrosektor