Russia is using the war to increase its share and push Ukraine out of the global wheat market

Russia will account for every fifth shipment of exported wheat in the season that starts on July 1. At the same time, Ukraine’s share will decrease to 5% compared to the level before the start of Russia’s military operation due to mined fields and disrupted logistics chains. Bloomberg reports this with reference to data from the US Department of Agriculture.

Russia’s share of global supplies will increase amid a record grain harvest in the country’s fertile lands, particularly in the North Caucasus. According to Bloomberg, citing sources, amid a record wheat harvest, Russia is trying to set a minimum price for grain exports for the second year in a row. In June, Russia tried to set a minimum price of about $240 per ton, anonymous sources told the agency. The same month, it had to lower its minimum ceiling to $275 per ton due to market pressure.

According to the UN, Russia’s grain exports amounted to $10 billion the year before the troops were sent to Ukraine. The main buyers of Russian grain are the countries of the Middle East and Africa. According to Bloomberg estimates based on Logistic OS data, from July 2022 to June 2023, Russia exported 12.6 million tons of grain to Turkey, 8 million to Egypt, 5.5 million to Iran, and 3.1 million to Saudi Arabia. Another 1-2 million tons of grain were shipped to Algeria, Libya, Pakistan, Israel, Sudan, Bangladesh, and Kenya.

Tags: Ukraine, Russia, wheat, war