Russia May Halt Wheat and Sunflower Exports Due to Fall in Prices
- 27-Mar-2023 5:24 PM
- Journalist: Patricia Jose Perez
Moscow: In light of the steep decline in world Wheat and Sunflower prices, Russia may temporarily halt product shipments, according to market sources. Russian industry leaders would meet with the Ministry of Agriculture to examine the concept of a temporary export ban. Russia is one of the top exporters of Wheat, Sunflower Oil, and seeds in the world, and it is a powerhouse in agriculture.
The administration was quoted in the newspaper as saying during an internal conference that the price of Sunflower Oil has decreased by more than 19% during the last ten days. The Russian government had already stated that it intended to buy 9.5 million tonnes of grain, more than tripling the amount it currently buys for the state reserve fund. The fund aims to help maintain domestic prices and allow the government to cool the market if prices increase too quickly by unloading supplies.
Although it has no intentions to stop Wheat exports, Russia wants exporters to make sure that farmers are paid prices that are sufficient to cover average production expenses. This would entail maintaining Wheat export rates at or above $274 to $279 per tonne. The Russian government, however, advised exporters to avoid prices below those similar to the present ones after recent drops in Wheat prices in Chicago and Paris because they were worried about local farmers being able to cover expenses. When supplied Free On Board (FOB) from Black Sea ports, Russian Wheat, with a 12.4% protein content, the price dropped $12.5 to $276.5 a tonne, according to a recent statement from the Ministry of Agriculture.
According to the ChemAnalyst database, it is anticipated that the export ban on Wheat and Sunflower oil has not gained much attention, but this could change if the situation escalates worldwide. A boost in demand from its domestic market and foreign importers would also help support it further.