Continuity in exports maintained due to softening of Russian wheat prices

17-Sep-2024 01:16 PM

Moscow. Foreign importers are showing good interest in buying Russian wheat available at cheap prices, while the environment is becoming favorable for Russian wheat due to decrease in exports from the European Union.

However, farmers of the Black Sea region are unhappy with the falling price of wheat. According to an analyst,

the free on board export offer price of Russia's wheat containing 12.5 percent protein has not been able to cross the limit of $ 223 per tonne since July 3. It has fallen by 14.5 percent since June.

Although farmers are not satisfied with this weak price, but it is helping Russia to maintain continuity in wheat exports.

It is worth noting that Turkey is a major importer of Russian wheat, but it has postponed the import of wheat from June 15 to October 15. Due to this Russia has to focus on other markets.

On the other hand, wheat exports from the European Union are declining because wheat production has been badly affected due to bad weather in its two major producing and exporting countries - France and Germany since May.

According to the available data, wheat exports from Russia rose rapidly to a new record level of 56 lakh tonnes in August 2024, whereas last year the exports in any one month could reach a high of 54 lakh tonnes.

Along with this, in the first two months of the current marketing season (July-June) of 2024-25, Russia exported a magnificent 94 lakh tonnes of wheat, which is much more than last year.

Out of this, 14 lakh tonnes of wheat was shipped to Egypt, 13.60 lakh tonnes to Bangladesh and Turkey, 4.90 lakh tonnes to Algeria and 4.70 lakh tonnes to Israel.