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From June 1 to June 7, the Russian Federation increased shipments of grain for export by almost a third
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From June 1 to June 7, the Russian Federation increased shipments of grain for export by almost a third

In June, Russia exported 621 thousand tons of wheat, which is 1.6 times more than the previous year. The main demand is for wheat, while shipments of maize and barley have decreased. Shipments to countries where Russian wheat had not been previously supplied, such as Indonesia, Mozambique, and Ghana, have also increased. Transshipment through ports has increased, while in-port transshipment has decreased, possibly due to weather conditions. Prices for wheat in the global market remain stable, and the reduction of export duties allows for a decrease in the price of Russian wheat, with an expected increase in exports in June. Domestic wheat prices continue to rise.

11 June 2023 11 June 2023

According to the director of the analytical department of the union, Elena Tyurina, 98.5% of this volume, or 621 thousand tons, fell on wheat. This is 1.6 times more than a year earlier. "Shipments of corn decreased to almost 10,000 tons from 107,000 tons in early June last year, barley was not exported at all," she said, noting that the main demand of the world market falls on wheat.

In June, it was shipped to 9 countries. The main volume fell on Egypt - 137.9 thousand tons, which is 6% more than a year ago. "Shipments to Turkey after the next extension of the grain deal decreased by 57.6% - to 82,000 tons from 194,000 tons at the beginning of June last year," she said.

As Tyurina emphasized, the main increase in shipments over this period was provided by countries where Russian wheat was not supplied in June last year. "This is Indonesia - 55 thousand tons, Mozambique - 54 thousand tons, Ghana - 49 thousand tons, small volumes went to Kenya and Iran," she specified.

According to her, 24 ports shipped grain against 20 a year ago. Transshipment through Novorossiysk increased 2.3 times, to 219 thousand tons, through Azov - by 40%, up to 149 thousand tons, through Rostov-on-Don - almost 1.8 times. "At the same time, offshore transshipment has decreased. Most likely, this is due to weather conditions, since loading is carried out at sea, and this is much more difficult than in the port," she said.

Grain was also shipped through small ports, among which Tyurina singled out the ports of Tolyatti, Balakovo, Volgodonsk.

Grain in the first week of June was exported by 9 companies against 21 years ago. She associates the reduction with the selection of the quota.

Speaking about the price situation on the market, Tyurina said that prices for French wheat have remained stable for the second week - $246 per ton. The American price fell by $3, to $247 per ton. The price of Russian wheat dropped from $250 at the end of May to $228-233.

“But this was the result of a reduction in the duty,” she said. “After the base price for calculating the duty on wheat increased from 15,000 to 17,000 rubles, the duty in dollar terms decreased by $21.5 from the end of May to $35 per ton. This is tangible, and while maintaining profitability, it allows exporters to reduce the FOB price," the expert said.

"The difference with the price of European wheat is now $8-10 per ton, and this will stimulate demand for Russian grain," Tyurina said. According to her, in June, wheat exports may reach 4-4.3 million tons.

At the same time, domestic wheat prices continue to rise gradually. Over the week, they strengthened by an average of 1.5%, to 10,300 rubles per ton, she said.

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