According to the Russian Grain Union, from July to December, the Russian Federation achieved nearly 60% of its annual grain export potential and may approach February 15 with a volume below the established export quota, which remains valid from February 15 to June 30, 2024.
In the initial half of the current agricultural year (July-December 2023), the Russian Federation exported 37.25 million tons of primary grain crops, marking a 10.6% increase compared to the first half of the previous season (33.7 million tons).
Notably, wheat shipments rose by 2.8% to 29.7 million tons, barley surged by 34% to 4.7 million tons, and corn experienced a remarkable 2.3-fold increase to 2.727 million tons. Durum wheat and peas also witnessed substantial growth, with durum wheat shipments increasing twelvefold to 846,000 tons and peas surging 3.4 times to 2.159 million tons.
The total grain export potential for the Russian Federation in the entire agricultural year stands at 63 million tons, including 52 million tons of wheat.
In the first half of the season, Russian milling wheat reached 65 countries, up from 61 the previous year. However, a discernible trend emerged, with reduced shipments to traditional Russian wheat buyers and increased exports to new markets.
Egypt topped the list of wheat purchasers with 4.154 million tons, albeit a 30% decline from the previous season. Turkey ranked second with 4.054 million tons, marking a 15.6% reduction, while Bangladesh, in third place, increased purchases by 2.5 times to 2.443 million tons. Notable increases were also seen in shipments to Algeria, Pakistan, Israel, Indonesia, Yemen, Kenya, and various Latin American countries.
Conversely, wheat purchases by Saudi Arabia dropped by 45%, Iran by 58%, and Sudan by 32%. The number of companies shipping milling wheat globally decreased from 203 to 144 in the first half of the season.
For barley, shipments increased to 25 countries, with significant growth to Saudi Arabia, Libya, Tunisia, and Israel. Corn's main buyers included Iran, Turkey, Israel, Vietnam, and Libya, with varying changes in shipments to each.
Turkey led in overall grain and leguminous crop shipments in the first half, totaling 4.945 million tons, despite a 21% decrease in purchases. The port of Novorossiysk dominated exports, accounting for 28% of total shipments, followed by raid transshipment at 22.5%, and the port of Rostov-on-Don at 11.7%.
While European wheat prices slightly decreased, Russian wheat maintained a competitive edge, and producer prices experienced a decline in dollar terms. Comparatively, when analyzed against the previous year, there was a significant drop in prices for European, American, and Russian wheat, as well as producer prices.
