Russian wheat exports to be below last year’s level for the second month in a row
In the first two months of the new season, Russia is expected to export about 8.2 million tonnes of wheat, down from 9.8 million tonnes last year. This decline is attributed to lower exporter margins and reduced demand. By August 20, contracts for Russian wheat totaled 3.9 million tonnes, compared to 5.8 million tonnes last year. Export prices are at $220/tonne, down from $252/tonne, and port prices have also decreased. SovEcon forecasts total Russian wheat exports for the 2024/25 season at 48.8 million tonnes, down from 52.4 million tonnes previously.
In the first two months of the new season, Russia will export about 8.2 million tonnes of wheat against 9.8 million tonnes of wheat a year earlier. Grain exports for the second month in a row is expected to be lower than last year’s against the backdrop of lower exporters’ margins and relatively low demand for wheat, predict experts SovEcon.
As noted, by August 20, the volume of concluded contracts for the sale of Russian wheat amounted to 3.9 million tonnes against 5.8 million tonnes last year.
‘Export prices of Russian wheat are at the historically low mark of $220/t (FOB) against $252/t a year earlier. At the same time, wheat prices at Russian ports are at RUB16400/t ($177/t) vs RUB166550/t ($170/t) a year earlier. With such a price difference, exporters‘ margin is only a few dollars against a double-digit margin last year,’ the analysts added.
Overall, SovEcon expects wheat exports from Russia in the 2024/25 season at 48.8 million tonnes compared to 52.4 million tonnes a year earlier.
Source Link : https://www.apk-inform.com/en/news/1543335
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