Wheat sets new course in Russia: Turkey, Egypt's share in export volume declines

Published 2024년 9월 20일

Tridge summary

Russian wheat exports are diversifying due to sanctions and the closure of the Turkish market, with the share to Southeast Asia and Africa increasing while deliveries to Turkey and Egypt have halved. This trend is expected to continue, with Bangladesh, Kenya, and Indonesia becoming more significant markets. However, the decline in total wheat exports is expected to continue due to high domestic prices and low foreign prices, reduced harvest, competition from Romania and Bulgaria, and Turkey's moratorium on grain imports. The opening of a new grain terminal in Vysotsk, Leningrad Region, and increased export activity from Vladivostok via the East Sea are providing new routes for exports. However, the trend is increasing logistics costs, particularly for deliveries to Bangladesh.

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

Original content

Due to sanctions and the closure of the Turkish market, Russian wheat exports are diversifying. The total share of 40%, which Turkey and Egypt previously had, has been halved in favor of deliveries to Southeast Asia and Africa. In this regard, the logistics costs of exporters are growing: when sending to Turkey and Egypt, they make up 7% of the cost of grain, and when delivering to Bangladesh - 22%. The share of Turkey and Egypt, the main countries for exporting Russian wheat, in the structure of deliveries in the 2023-2024 agricultural season (ended in early July) was 30%, having decreased by 10 percentage points year-on-year, according to data from the Price Index Center (PIC). In the new season, the trend is strengthening. According to Rusagrotrans data, in July-August, the share of Turkey and Egypt in the structure of foreign deliveries was 22% against 27% a year earlier. According to the CCI, Bangladesh's share in the export structure increased from 4% to 6% last season, ...

Source: Zol