Analysis of wheat stocks and their impact on the market

Analysts believe that record wheat stocks will put pressure on the domestic market. As of January 1, wheat reserves in agricultural enterprises and processing enterprises amounted to 36.5 million tons, which is 1% higher than last year. This figure exceeded last year's record levels, despite relatively sluggish exports in recent months.

Wheat reserves in processing organizations amounted to 14.7 million tons, which is 5% higher than last year’s figure. At the same time, wheat reserves in agricultural organizations amounted to 21.8 million tons, which is 1% less than a year earlier.

By region, total wheat reserves in the South remained unchanged and amounted to 12.5 million tons. In the Center, reserves increased by 2% and reached 9.3 million tons, and in the Volga region they increased by 5% and amounted to 7.6 million tons.

Wheat exports have slowed in recent months due to government efforts to regulate prices for the product. According to SovEcon, Russia exported 10.4 million tons of wheat from November to January, down from 12.3 million tons in the same period a year earlier.

An additional factor influencing wheat stocks is a good harvest. According to Rosstat, the wheat harvest amounted to 92.7 million tons, which is higher than the three-year average (88.7 million tons).

Analysts suggest that record wheat stocks will put pressure on the domestic market.