Exports of grain from Russia increased by 26% in July-October compared to the same time period last year to 15.7 million metric tons (MMT), according to SovEcon. Of these 15.7 MMT of grain, wheat accounted for 13.5 MMT of exports, the analytics agency said.
Russia is the largest exporter of wheat in the world but pressure from export watchdog groups to reduce exports in order to curb inflation, along with a strengthening ruble have slowed their pace over the past few weeks. Black Sea wheat prices have increased again, with SovEcon quoting FOB Black Sea wheat at $229/metric ton, up from $225, and barley at $232/metric ton.
Slower Russian exports have been pushing global wheat prices up for months. Late last week, European wheat futures edged higher as rising prices in Russia provided some support along with gains in Chicago.
Benchmark December milling wheat on Paris-based Euronext was up 0.50 euros, or 0.25 percent, at 203.25 euros.
Dealers noted that Egypt purchased 180,000 tons of Russian wheat at a tender on Thursday but said the price gap versus EU supplies had narrowed.
“Egypt’s wheat purchase tender on Thursday did show some glimpses of hope but not a radical change in Russian/Black Sea domination of export markets,” one German trader said. “The lowest price Egypt paid was also some $8 more than the previous tender purchase on September 18. This underlines there is an upward trend in Black Sea prices, and Russia is giving up some of its lead over western EU.”