Volga Baikal AGRO NEWS Update on the Grain Market Situation !!!
SINCE THE BEGINNING OF THE AGRICULTURAL YEAR, RUSSIA HAS REDUCED WHEAT EXPORTS BY 28.4% – UP TO 27.4 MILLION TONS.
For the period July 01, 2021 – February 17, 2022, Russia exported 27.4 million tons of wheat, which is 28.4% lower than on the same date last season (38.2 million tons), – says the monitoring of the Ministry of Agriculture of the Russian Federation.
- wheat supplies fell by 29.6% – up to 22.4 million tons,
- barley – by 31.5% – up to 2.9 million tons,
- corn – by 12.6% – up to 1.7 million tons.
According to the International Grain Council, the price of Russian wheat of the 4-th class (12.5% protein, FOB Novorossiysk) as of February 17 amounted to $ 315 per ton, having decreased by $ 3 over the week.
In recent days, State Duma deputies, farmers and industry experts are speaking about the cancel or at least reduction of export duties on grain. Under the increase of the costs of agricultural production (by 15-20%), the duty has already led to a “critical decrease in profitability”, which forced farmers to refocus on the production of more profitable crops – sunflower, soybeans, flax, peas.
The International Grains Council predicted a decline in the stocks of the main wheat exporting countries to the lowest values over the past nine years. The reason is the incessant high demand caused by both the pandemic and natural disasters, which turn some previously self-sufficient countries into active grain buyers.