Russia limits grain exports

The Russian government approved the proposal from the Ministry of Agriculture to limit grain exports to 7 million tons from April to June.
However, the quota is unlikely to have a strong impact on the market as 7 million tonnes is roughly what Russia would likely export during this period, traders report.
Russia, the world's largest wheat exporter, announced on Thursday that it would sell up to 83% of its state-owned grain stocks on the domestic market from April 13 to increase supply for mills and bakers.
The customs union of Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan has announced that it will limit the export of sunflower seeds, rye and soybeans until June 30. This will take effect on April 12th.
Despite all these measures, Russia has so far refrained from using hard grain export restrictions that were observed in previous crises and are unpopular with sellers. However, Russia is striving to reduce pressure on domestic consumers given a weaker ruble.
The Department of Agriculture, which holds 1.8 million tons of grain in government stocks, had previously announced that it plans to sell 1 million tons of it.
In total, it is planned to bring up to 1.5 million tons of grain to the domestic market in order to meet the needs of the flour and bakery industry as well as the livestock industry, according to a statement by the ministry.
Market participants said the sale of inventory was not a step towards tightening export quotas, given that the state inventory consisted of fairly old grain that the Ministry of Agriculture bought in 2008-2016 and that it was mainly in Siberia, far from Russia's main export ports, located. Russia used to have a much larger inventory, but has reduced it in recent years as its annual production has become more stable.
The Russian Union of Grain Mills last week urged the ministry to "take action to address imbalance in wheat and flour pricing."
"The increase in sales from inventories seems to be an attempt to reduce tensions and, above all, to reduce the prices of flour and baked goods," said Alexander Korbut, deputy director of the Russian Grain Union lobby association. It was unlikely that this move would result in stricter export restrictions on grain, he added.