Russian wheat exports surge nearly 11% despite export curbs

Exports of Russian wheat saw a significant year-over-year surge since the beginning of July 2020 through April 22, 2021, the country’s agricultural ministry reported on Monday.

Russia sold 34.7 million tons of wheat during the indicated period, marking 10.9% growth compared to the same period a year ago, ministry data indicates.

According to the figures revealed by the Federal Customs Service, overall exports of grains from Russia during the period amounted to 43.7 million tons, which is 14.1% more than the nation had sold by the end of April in 2020.

Sales of barley saw strong growth of 56.4% and totaled 5.4 million tons, while exports of corn declined by 2.1% to 3.2 million tons.

Last week, Russian wheat export prices rose for the third consecutive week, buoyed by higher prices for July wheat WN1 on the Nasdaq and most traded milling wheat BL2U1 on the Paris-based Euronext. Global benchmarks increased on the reported supply concerns.

According to the International Grains Council (IGC), as cited by the Russian agricultural watchdog, the price for Russian wheat with 12.5% protein loading from Black Sea ports saw a weekly surge by $10, or 4.1%, to $255 per ton.

Russian exports of grains in the previous agricultural year, which began on July 1, 2019, and ended on June 30, 2020, amounted to 41.7 million tons, of which wheat sales accounted for 33.2 million tons.

The ministry expects foreign overall sales of grains to total 45 million tons in the current agricultural year, with exports of wheat projected to rise to 35 million tons. In October, Russian Deputy Prime Minister Viktoria Abramchenko said that the country’s grain exports may reach 50 million tons.

Earlier this year, the Russian government introduced 30-percent duties on exports of some grains to stabilize domestic food prices. They will remain in place until 30 June 2021.

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