Russia increased wheat export shipments by 27% from September 1 to 18

From September 1 to September 18, the Russian Federation exported 3.3 million tons of wheat, which is 27% more than in the same period last year. Indonesia entered the top 3 buyers, according to the monitoring of the Russian Grain Union.

As Elena Tyurina, director of the union's analytical department, told Interfax, shipments of all major grain crops during this period increased by 20.5%, to almost 3.7 million tons. In particular, barley exports decreased by 17%, to 374 thousand tons, corn - increased almost 1.7 times, to 24.3 thousand tons.

According to her, Egypt became the largest buyer of wheat during this period. "He is gradually restoring purchases. If at the beginning of the season (July 2023 - IF) they were 30-40% lower than last year, now the backlog is 9%. From September 1 to September 18, 535 thousand tons of Russian wheat were shipped to Egypt against 588 thousand tons a year ago."

In second place is Iran, where 276 thousand tons were shipped. But this is 35% less than a year earlier, the expert clarified. “Indonesia took third place, where there were no shipments a year ago. In September of this year, 226.5 thousand tons were sent,” Tyurina said.

Türkiye ranks fourth. “Shipments, unlike Egypt, have not been restored; 177 thousand tons were shipped, which is 34% less than last season from September 1 to 18,” she said.

The top 5 buyers are completed by Sudan, where 139 thousand tons were exported (more than doubling). “Shipments to Yemen, Bangladesh, Pakistan, Algeria are actively growing, African countries continue to purchase, in particular Tanzania, Senegal, Morocco, which last year at this time did not buy Russian wheat,” the expert said. “Among Latin American countries, we can highlight "Brazil, where 87 thousand tons were sent, and Mexico - 75 thousand tons. So, the decrease in shipments to Egypt, Iran and Turkey is compensated by the active growth of supplies to countries in Africa, Southeast Asia and Latin America."

Tyurina also reported that in September, shipments through small ports by river-sea vessels were gradually reduced. “This is partly due to the fact that they are mainly located in the Volga region, and the cleaning there has not yet been completed. In addition, shipments to remote destinations are carried out by large-tonnage vessels, so transshipment volumes in deep-water ports are growing,” she explained, saying that through the port of Novorossiysk shipped 1.21 million tons (an increase of 49%), offshore transshipment increased by more than 1.5 times, to 1.11 million tons.

According to her, the number of exporters has dropped to 18 from 76 a year ago.

Speaking about the price situation on the market, Tyurina said that its dynamics were multidirectional. Prices for American wheat over the past week have increased by 7%, to $253 per ton. At the same time, European wheat fell in price by 0.5% to $245. Prices for Russian wheat (fourth class, FOB Novorossiysk), as a week earlier, fluctuated between $246-247 per ton. At the same time, she recalled that at the beginning of the season (July 2023) the price was $235 per ton. “And now our wheat is $1-2 more expensive than European wheat. This premium is formed due to active demand, primarily from new buyers,” she noted.

At the same time, Tyurina said that the increase in duties on wheat exports is a deterrent for supplies abroad. According to her, since the beginning of the season, the duty in dollar equivalent has increased by $17.5, to $46.9 per ton.

Wheat producer prices are falling. Over the week, the fall averaged 2%, to 13 thousand rubles per ton.