Wheat export quota may not be taken

Published Feb 18, 2025

Tridge summary

The article highlights the concerns of Arkady Zlochevsky, the President of the Russian Grain Union, regarding the profitability of wheat exports due to low world prices. He points out that the current export rates will not meet the 10.6 million ton wheat export quota set since February 15, and questions the Ministry of Agriculture's forecast of 57 million tons of grain exports by the end of the season. Zlochevsky attributes the decline in grain exports to unprofitability and anticipates a price ceiling at 17,000 rubles per ton, significantly lower than the current world prices. However, he believes that the world market will adjust, and exporters will continue to seek profitable opportunities within the existing quotas.

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

Original content

Based on the current export rates, the wheat export quota, which has been in effect since February 15 and amounts to 10.6 million tons, will not be used. This opinion was voiced by the President of the Russian Grain Union Arkady Zlochevsky during a press conference. “Some analysts are already giving different scenarios. For example, the Institute for Agricultural Market Studies gave three scenarios. The optimistic one is 43 million tons of wheat, the moderate one assumes 39 million tons, and the pessimistic one is 35 million tons,” he said. According to Zlochevsky, since the beginning of the season by mid-February, Russia has supplied 39.8 million tons of grain to foreign markets, including slightly more than 32 million tons of wheat. Zlochevsky questioned the Ministry of Agriculture’s forecast of 57 million tons of grain exported by the end of the season. Even if the wheat quota is fully used, as well as two regional corn quotas (337 thousand tons from Primorsky Krai and 200 ...

Source: AgroInvestor