News

Record wheat stocks and production in Russia; understand the reasons for the great harvest; hEDGEpoint analysis

Wheat
Russia
Market & Price Trends
Published Feb 20, 2024

Tridge summary

Russia's winter wheat regions are experiencing favorable weather conditions, leading to predictions of a record total production. SovEcon and IKAR have increased their forecasts for the 2024 harvest to 93.6M mt and 93M mt respectively. However, due to a slowdown in exports, wheat stocks have reached a record 36.5M mt as of January 1, marking a 1% increase from the previous year. This slowdown is due to weaker demand from the Middle East and North Africa, as well as government efforts to regulate wheat prices, which are expected to continue putting downward pressure on prices.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Russia continues to bring bearish fundamentals to wheat markets. Weather conditions in most winter wheat regions remain favorable for the crop, with the potential for record total production. • Given these conditions, consultants specializing in the Russian market have raised their estimates for the country's harvest. SovEcon raised its forecast for Russian wheat production in 2024 by 1.4 Mmt to 93.6M mt, while IKAR raised its estimate to 93Mmt. • Looking at the demand side, some of the main destinations continue to show weakness in demand. The recent slowdown in exports has driven Russian wheat stocks to record levels. • Russia's wheat stocks (on and off farms; excluding small businesses) on January 1 reached 36.5Mmt, marking a 1% increase over last year's level. According to the recent Grains & Oilseeds report from hEDGEpoint Global Markets, Russia continues to bring bearish fundamentals to wheat markets. The recent slowdown in exports has driven Russian wheat stocks to record ...
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