November 3, 2014
On October 2nd Global AgInvesting discussed the sudden exit of Russia from global wheat markets due to the rapid population increase the country experienced through the annexation of Crimea and the spike in domestic demand after the country banned imports from Western countries putting upward pressure on prices and leaving Russian wheat unable to compete on global markets. https://www.globalaginvesting.com/news/NewsListDetail?contentid=4707
However, Russia has re-emerged on the global stage with the announcement of a purchase of Russian wheat at $256.43 per ton by Egypt’s state grain buyer, GASC for delivery in late November after global prices increased sufficiently and the value of the Ruble fell by 13% since July against the euro making Russian wheat competitive once again. At the beginning of the 2014/15 season Russia sold record amounts of wheat in only the first four months of selling before exiting the market. Its reappearance will not bode well for European sellers as they will need to lower prices to stay competitive and avoid large carryover stocks.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service
Let GAI News inform your engagement in the agriculture sector.
GAI News provides crucial and timely news and insight to help you stay ahead of critical agricultural trends through free delivery of two weekly newsletters, Ag Investing Weekly and AgTech Intel.