Grain exports from Russia, currently the world's largest grain exporter, rose sharply last week due to the weak ruble exchange rate, reports the Russian agricultural consultancy SovEcon.
Russian dollar wheat export prices fell sharply and for the seventh consecutive week last week after a slump in global oil prices and concerns about the spread of the coronavirus pushed the ruble against the dollar to a four-year low.
Russia's wheat exports from ports rose 30% from the previous week to 725,000 tons, according to SovEcon. The company raised the estimate for Russian grain exports in March from 2.1 million tons to 3.4 million tons.
Which destinations bought more wheat from Russia was initially unclear. Turkey, Egypt and Bangladesh have traditionally been the largest buyers of Russian wheat.
Russian wheat with a protein content of 12.5% loaded from ports on the Black Sea fell by $ 6 at the end of last week to $ 207 per ton FOB, according to SovEcon. Barley was constant at $ 181 per ton.
Another consulting firm in Moscow, IKAR, also quoted $ 207 a ton for wheat, a decrease of $ 5.
Russia sees no need to trigger a grain export tariff (currently zero), the Ministry of Agriculture said last week.
"We do not expect the Ministry of Agriculture to take any serious action, at least in the short term, but we are seeing more verbal interventions aimed at cooling the market or slowing exports," said SovEcon.
According to SovEcon, ruble prices on the domestic wheat market rose sharply, and supply was limited because farmers were reluctant to sell.
Winter grain is in good shape in Russia. Only 2-4% of the stocks are in poor condition, compared to 5% in 2019, according to SovEcon, citing data from the state weather service. However, dry weather in parts of Russia means that rain is needed.
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