Limited supply and export duty slow down Russian wheat export in 2021/22 MY - expert

Source

APK-Inform

4675

Production of wheat will decline sizably in Russia this season. However, it will remain at a high level, declared trader with Agro-Fregat LLC, Andrey Manenko within his presentation at the international Middle East Grains&Oils Congress, organized by APK-Inform in Cairo on September 30.

“Wheat crop will total 75.5 mln tonnes, down by 12% year-on-year amid lower yield and narrowing of the planted area”, - the expert explained.

At the same time, lower wheat production will not result in significant cut of its export potential. A. Manenko said that Russia would export 38 mln tonnes of wheat in 2021/22 MY, only slightly down year-on-year (38.1 mln tonnes in 2020/21 MY).

“However, since the start of the current season, we see the lower export of Russian wheat compared to the previous MY amid limited supply of the grain and the acting export duty”, - the expert said.

Additionally, A. Manenko emphasized the current high prices of Russian grain that are supported by lower production and export duties. Moreover, he said that the lowering of wheat production in the world would further support the Russian prices.

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