RUSSIA - After being conspicuous in it’s absence from the export market for several weeks, Russia has returned to the world wheat market, writes Brenda Mullan, Analyst, AHDB/HGCA Market Intelligence.
Egypt’s state grain buyer, GASC, indicated this week that it bought Russian wheat at $256.43/t on a cost and freight basis, for shipment in late November.
The Russian wheat export market comeback has been attributed to the weakening of the Rouble, which has fallen by 13 per cent again the Euro since the beginning of July.
This has also coincided with a period of raising global grain prices, allowing Russian wheat to edge back into a competitive position in the global market.
The news is the latest in what has been a very eventful wheat export campaign for Russia to date.
Some commentators described the beginning of Russia’s wheat export campaign for the 2014/15 as having a ‘sense of urgency’ and in only it’s first four months Russia sold record amounts of grain compared with the same period in previous years.
However, as the season has progressed, we have seen Russia exiting the wheat export market, as its competitiveness in the world market waned - read more in this previous Grain Market Daily.
With sizeable EU export surplus to shift, Russia’s return to the export market may come as unwelcome news, increasing the need for EU wheat to be competitive if large closing stocks are to be avoided.
TheCropSite News Desk