Less than three months are left before the start of the new season, and the trade in new-crop grain is gradually picking up the pace. However, no decline is envisaged in old-crop grain purchases yet.
The flow of grain exports from Russia does not slow down. The country whose bumper crop pressured both the global and domestic wheat markets early in the current season, has ultimately found itself in an advantaged position.
As other major wheat exporters reduced their supply, the demand for Russian wheat remains strong even before the season’s close. Although the top importer of Russian wheat – Egypt – may cut purchases substantially in the near term due to own harvesting, demand from other end markets stays at quite a high level for this time of season. African and Asian countries have appreciably increased imports of Russian wheat this season. Furthermore, Russia managed to step up deliveries of its wheat even to distant markets such as Venezuela and Mexico.
According to the Ag Ministry, early spring crops have been sown on 137.8 Th ha (6%) by now that is far less than by the same date a year ago (1884 Th ha). Most regions have not started planting yet.