Russian wheat exports in April to approach record-high – SovEcon

Exports are boosted by the falling wheat prices in the domestic market and stabilizing export prices.

Russia is set to export between 4.2 and 4.5 million metric tons (MMT) of wheat in April, which is close to a record high, as per SovEcon estimate. Falling wheat prices in the domestic market and stabilizing export prices are boosting Russian wheat exports.

The record-high figure of 5.0 MMT was achieved in April 2020, when traders rushed to make customs declarations before the introduction of export taxes.

Currently, low prices in the domestic market are driving exports. As of April 6th, the price of Russian third-grade wheat had dropped to RUB 11,475 ($140) per metric ton, the lowest price since November 27th, 2020. These prices are declining due to high wheat stocks and low demand in the domestic market.

On the other hand, export prices are stabilizing. The lowest price at the last tender by Egyptian company GASC was $275/MT. Earlier, news agencies reported that the Russian Ministry of Agriculture did not recommend exporters to sell wheat at a lower price than $275/MT FOB.

While active exports from Russia may deter price growth in the global markets, traders’ reluctance to sell wheat at a lower price than $275/MT may serve as a supporting factor for the markets.

Follow the Black Sea grain market

Get your free trial of The Sizov Report — an analytical service covering agricultural markets of Russia, Ukraine and Kazakhstan

Try for free

More Articles for You

Russian wheat exports in November drop to season low – SovEcon

Wheat sales slowed due to stormy weather in the Black Sea.

Russian wheat crop to drop in 2024 – SovEcon

The yield in 2024 is expected to move lower on expected average 2024 crop conditions and decline in agriculture inputs application.

SovEcon: Russian wheat market bottomed out

After three months of decline, the market is bottoming out amid increasing demand and shrinking supply.

SovEcon: Russian grain market to bottom out in coming weeks

Russian wheat prices may reverse after a three-month decline amid higher demand and lower supply.

SovEcon cut Russian wheat export forecast for the first time this season

The estimate was revised amid sluggish wheat sales and anticipated purchases for the intervention fund.