Russia has nowhere to store a historic wheat harvest

Russia has nowhere to store a historic wheat harvest
Russia has nowhere to store a historic wheat harvest

Russia could harvest a record 100 million tons of wheat this year, according to SovEcon consulting firm, but Russia has problems exporting large quantities of grain, reports Bloomberg.

Russian farmers are preparing to finish harvesting a bountiful wheat crop, thanks to good weather conditions throughout the summer. Normally, a bumper crop in the world’s largest wheat exporter would send prices down on the world market. But so far this season, export taxes imposed by the Moscow government and logistical problems resulting from Russia’s war in Ukraine have kept a larger than usual amount at home.

“Storage has been a problem for some farmers for several months. We haven’t seen anything like it since 2017-18,” SovEcon chief operating officer Andrey Sizov said.

Prices for Russian export wheat have recently become more competitive with wheat from other areas such as France and the US, meaning supplies could increase. High prices and problems with the delivery of Russian cargo, with some insurance companies and banks refusing Russian raw materials after the invasion of Ukraine, limited exports at the beginning of this season. Even though Russian food exports are not subject to sanctions, some institutions are reluctant to do business with Russia as a result of the sanctions.

World wheat prices exploded after Russia’s blockade of Ukrainian ports crippled Ukraine’s wheat exports, pushing up food prices. Although a deal to unblock Ukrainian ports, agreed in July, helped lower prices, the escalation of the war in Ukraine has brought the price of wheat back to pre-deal levels.

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The International Grains Council (IGC) also raised its estimates for Russia’s wheat harvest by almost six million tonnes on Thursday, but it does not expect this additional production to leave Russia, so it kept unchanged export forecasts at 36.5 million tons.

“This huge harvest does not translate into huge exports,” SovEcon chief operating officer Andrey Sizov concluded.

Source: Agerpres

Tags: Russia, export, wheat,

Publication date: 09-23-2022 09:04

The article is in Romanian

Tags: Russia store historic wheat harvest

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