Russia introduced export quotas for wheat, corn and barley in the amount of 24 million tons

From February 15 to June 30, 2024, Russian authorities set a quota of 24 mln tonnes for wheat, corn and barley exports to countries outside the Eurasian Economic Union, while in 2022/23 MY the quota was 25.5 mln tonnes for all crops.

In the first half of 2023/24 MY, despite the sanctions, Russia exported a record 30.8 mln tonnes of grain, including 23.7 mln tonnes of wheat, up 33% and 23%, respectively, compared to last year. Before the quotas came into effect, wheat exports would have amounted to 28-30 mln tonnes out of the projected 50 mln tonnes, so the new restrictions will not significantly affect Russian supplies in the 2nd half of the season.

Prices for Russian wheat remain at the level of 230-235 $/t FOB, but amid market saturation with wheat supply from Argentina and Australia in December, exports slowed significantly and for 1-25 December amounted to 3.1 million tons of grain, which is 27.5% lower than the corresponding figure last year.

In Ukraine, the purchase price of wheat increased due to the growth of the dollar by 2%. Traders have stepped up purchases of milling wheat, which is already $20/t higher than feed wheat. During the week, demand prices for feed wheat with delivery to the ports of the Black sea rose to 156-158 $/t or 6300-6400 UAH/t, and for food – to 175-180 $/t or 7500-7700 UAH/t.

the Shortage of supply of milling wheat is forcing processors to raise purchase prices, although prices for flour and bran remain quite low.

Tags: Russia, corn, barley, wheat, restrictions