Russia reduced grain exports by 18.7% in September; global market prices are rising - analysis by the Russian Grain Union.

According to the report of the Russian Grain Union, from September 1 to 20, Russia exported 4.09 million tons of grain, which is 18.7% less than the previous year.

Elena Tyurina, the director of the union's analytical department, reported that wheat shipments during this period decreased by 10.8% to 3,753,000 tons.

In addition, barley shipments fell by 2.6 times to 257 thousand tons, and corn shipments halved to 82 thousand tons.

The geography of shipments also narrowed, with wheat being exported to 30 countries, compared to 46 the previous year. The expanded geography of shipments included countries such as Mexico, Indonesia, Sudan, and Pakistan, which had significant purchases in the previous season.

Purchases of wheat by Egypt increased by 23.6% to over 1 million tons, attributed to contracts executed based on August trades.

Furthermore, wheat shipments to Algeria doubled to 306 thousand tons, to Kenya by 1.7 times to 186 thousand tons, to the UAE almost doubled to 131 thousand tons. Significant amounts of wheat were also sent to Nigeria - 138 thousand tons, and to Syria - 111 thousand tons.

However, shipments to Turkey decreased by 70% to 108 thousand tons due to a wheat import ban in that country.

Some other countries, such as Bangladesh, Saudi Arabia, and Brazil, also reduced their wheat purchases by 60%, 48%, and 40%, respectively.

Barley shipments, according to the report, increased by 75 thousand tons to Tunisia, while shipments to Saudi Arabia decreased by 75% to 65 thousand tons. Barley exports to Iran decreased by 46% to 51 thousand tons.

Iran also reduced its purchases of Russian corn by 49%, yet became the largest buyer during this period, purchasing 75.8 thousand tons.

Tyurina also noted that the number of companies engaged in wheat exports more than halved, from 78 to 38. The number of ports facilitating grain deliveries also decreased from 46 to 43. Novorossiysk remains the leading port in terms of shipments, but volumes decreased by 5.5% compared to the previous year. Transshipment by road also declined by 11%. Ports of Rostov-on-Don, Azov, and Astrakhan reduced their shipments by 65%, 69%, and 24%, respectively. A significant increase in shipments through the ports of Taman and Vysotsk reached 10% and 55%, respectively.

World wheat prices are on the rise. French wheat increased by 1.7% in a week to $246 per ton, while American wheat rose by 2.5% and is priced at $248 per ton.

The price of Russian wheat decreased to $217 per ton, maintaining a $29 discount compared to European grain. It is expected that the increase in global prices will also impact the domestic market, as demand for Russian wheat remains high.

The average price of wheat for producers is $157 per ton, which is 8.8% lower than at the beginning of the season. However, prices vary by region, with the maximum price in the Krasnodar Territory at 15,000 rubles per ton, and the minimum price in the Samara region at 11,600 rubles per ton.