Russian wheat export price rises due to strong demand from importers

07-Oct-2024 04:46 PM

Moscow. Due to decrease in domestic production and supply and strong demand from importing countries, the export offer price of Russian wheat has increased to the highest level in the last three months. Egypt and Saudi Arabia are trying to buy enough wheat from the Black Sea region. While Turkish flour millers are also waiting for the ban on wheat imports to be lifted. The price of Russian wheat has increased by 4.3 percent in just two weeks and now it has increased to the highest level since June 26.

The free on board average unit export offer price of Russian wheat with 12.5 percent protein content at the ports of the Black Sea region has increased to $ 228.50 per ton for shipments during the second half of October and the first half of November.

In fact, the weather in Russia has become very unfavorable and many areas have been declared extremely drought-affected areas. It is worth noting that since May 2024, there has been a severe drought and dense fog in various parts of Russia, which has affected the wheat crop to a great extent. During the 2024-25 season, wheat production in Russia is estimated to fall to 821 lakh tonnes and its export from the country is estimated to shrink to 470 lakh tonnes. Despite this, Russia will remain the world's leading exporter and third largest producer of wheat. According to trade analysis, in view of the decline in production due to adverse weather, Russian farmers are not showing any hurry in selling their wheat stock. Due to which the price of this important food grain is rising high and fast there.