Due to geopolitical risks, traditional buyers of Russian grain are diversifying the geography of suppliers.
However, according to the statement of the Union of Exporters, although there are “negligibly few” new deals, grain importers of the Russian Federation do not refuse deals.
The head of the union, in a commentary to the TASS agency, said that in the light of the military events, high demand for grain in the Russian Federation is not expected in the coming months. As a result, Russian exporters are likely to take a wait-and-see approach to purchases in the domestic market, where prices are rising.
According to Eduard Zernin, exporters will not be greatly affected by the order on the mandatory sale of 80% of foreign exchange earnings under all foreign trade agreements. Exporters and all agriculture will be hit much harder by the increase in the key rate of the Central Bank to 20%.
In turn, the director of the analytics department of the Russian Grain Union (RGU), Elena Tyurina, said that there should be no problems with the export of grain even with Western sanctions, since it is in demand on the market. According to Tyurina, now the balance for potential exports is about 6.3-6.5 million tons.
Russian experts previously stated that since the beginning of Russia's hostilities in Ukraine, actual sales of wheat have not been recorded, the grain price is called virtual by analysts.
Note that India intends to seize the moment to increase its wheat exports.