Russian wheat exports were raised in the crop year 2022/223, while Bangladesh announced to import the grain from Moscow to secure supply amid soaring prices.
The Russia-focused Sovecon consultancy stated that it had raised its outlook for the Kremlin’s wheat exports in the crop year 2022/23, which began on July 01, by 200,000 tons to 43.10 million tons.
Russia is the world’s largest producer of the grain, exporting most of its output in the Middle East and Africa.
So far this marketing season, its exports are down amid a robust ruble, state export tax, and hurdles with banks and logistics caused by Western sanctions.
Sovecon’s latest increase is modest in comparison to its previous upgrade of 90.90 million tons to 94.70 million tons.
The consultancy’s head Andrey Sizov said that Mocow could have exported 50.00 million tons of wheat this season from the supply-demand perspective. Yet, a strong local currency and export tax is not allowing it to flow as fast as it should.
Still, he anticipates Russian wheat to accelerate with a graduate fall in competition from other European wheat.
In addition, Sizov stated that the Kremlin’s exports would get further support if global wheat prices strengthen, domestic market price declines, or the ruble weakens against the US dollar.
Bangladesh to import wheat from Russia
Bangladesh announced that it will import 500,000 tons of wheat at $430.00 per tons from Russia as it battles to secure supplies due to soaring prices.
Among importers, the South Asian nation has been hit hard by the disruption of Russian and Ukrainian grain exports amid the ongoing Eastern European war.
Now, it has been exploring ways to import wheat since its largest supplier, India, banned exports of the grain in May.
The Bangladeshi government said that its deal with Moscow would be signed in a few days and the shipment would happen in phases by January 2023.
