The export sales of Russian wheat (concluded but not fulfilled agreements) as of April 25 decreased to 1.7 mln tonnes against 2.4 mln tonnes a month earlier, according to Sovekon’s assessment, based on data from the National Commodity Exchange.
“This is the lowest volume since November 2022. Sales began to decrease due to the low competitiveness of grain from the Russian Federation on the global market,” experts explained.
The competitiveness of Russian wheat is falling compared to European wheat. Thus, as of April 24, a tonne of Black Sea wheat was $6 more expensive than French wheat, while a month earlier Russian wheat was $2 cheaper.
“The reluctance of Russian exporters to sell grain at a price lower than $275 FOB may be one of the explanations for the drop in exports. Earlier, news agencies reported that the Ministry of Agriculture of the Russian Federation recommended exporters not to sell wheat below this mark,” the message states.
Amid weakening exporters’ demand, Sovekon lowered the estimate of wheat exports from the Russian Federation in April to 4.2 mln tonnes against 4.5 mln tonnes in March.