Russian wheat exports expected to decrease by 14% in January 2023
1.9 million tonnes of wheat was shipped from Russian ports by January 19
Russian wheat exports will decrease from 4.3 million tonnes in December 2022 to 3.7 million tonnes in January 2023, forecast experts of SovEcon. Wheat sales decrease due to growth of export duties and weak trading activity before the New Year. Exports reduction may affect the internal market, according to SovEcon report.
1.9 million tonnes of wheat was shipped from Russian ports by January 19. Exports have slowed own due to low trade activities over the New Year holidays and unfavorable weather. Exports have been also affected by export duties which grew from $45/t in early December to $68/t by December 10.
In general, exports meet the forecast of SovEcon according to which 44.1 million tonnes of wheat is to be exported from the country in the season of 2022/23. U.S. Department of Agriculture forecasts wheat exports at 43 million tonnes.
According to the statement, SovEcon forecast can be revised if Russia undertakes wheat exports. On January 17, Vladimir Putin ordered to create stable reserves of wheat and expressed his concerns over fast growth of exports.
“We expect that reduction of export activities amid high reserves may put pressure on prices in the internal market,” reads the statement.
