The country exported about 1.7 million tonnes last month, according to consultant ProZerno. This compares with 1.1 million tonnes sold in March 2021, although these sales were stifled by changes in state grain export taxes. The most recent volume is still only about half of March 2020. Russia and Ukraine together account for about a quarter of world grain trade. Exports from Russia slowed immediately after the invasion in February, but have since recovered, according to analysts and data providers. Sales remain lukewarm outside Ukraine and this keeps world prices for crops such as wheat and sunflower oil high and raises concerns about access to food in large importing regions such as the Middle East and North Africa. Shipments from Russia came in a “quick” clip in the second half of last month as payment and security challenges for ships willing to cross the Black Sea were “mostly” resolved, the adviser said. SovEcon in an email note. Part of this wheat goes to countries that usually import from Ukraine. The Russian invasion cut off Ukrainian ports, its main export route. While Ukraine is trying to export by rail, this will probably only work for small quantities. In early March, Russian President Vladimir Putin ordered restrictions on the financing of foreign companies by “unfriendly” countries, which caused problems for some exporters. Subsequent changes to the layout have allowed funding to run more smoothly. Volumes in basic agricultural products – which also include corn, barley and sunflower oil – totaled about 2.5 million tonnes during the month, up 15% from last year, according to Geneva-based Agflow. . Top destinations were Turkey, Egypt, Iran and Libya. These are mostly traditional customers, and some volumes have also appeared for Israel, which often buys from Ukraine, said Nabil Mseddi, CEO of the company. RIF topped Russia’s export rankings in March, with foreign trader Viterra shipping the second-largest volume, according to ProZerno. However, the Russian Grain Exporters’ Association said last week that the new contracts were “negligible” compared to previous seasons. SovEcon expects Russia to meet its 8 million tonne wheat export quota set for the latter part of the season, unless additional trade restrictions are announced. © 2022 Bloomberg LP
