Russia, the largest exporter of wheat The world's largest exporter of wheat, the world's largest exporter of wheat, announced on Friday a 63% reduction in its wheat export quota for the second half of the export season. The government has therefore set the limit at 10.6 million metric tons, suggesting a significant decrease in exports next year.
Furthermore, the figure is in line with the 11 million tonne quota announced late last month by the Eurasian Economic Union (EEU). The EEU is a trade alliance formed by Russia and four other former Soviet countries.
The move is part of an effort to improve domestic supply and curb inflation, which currently stands at 9.5%. Russia estimates wheat production in 2024 at 83 million tonnes, down from 92.8 million tonnes in 2023. Last season, the export quota was 29 million tons.
The government said it made the decision based on the projected balance between grain production and consumption in the domestic market.
Impact of quotas and weather conditions on exports
Despite the new quota, consultancy IKAR projects that Russia's wheat exports will reach 43.5 million tonnes in the current season. That's a significant drop from the 55.5 million tonnes exported in 2023/24.
Furthermore, analysts indicated that the adjustments to the quota were due to the rapid pace of exports in recent months. The smaller harvest, caused mainly by adverse weather conditions, also contributed to this decision.
Meanwhile, Russia has so far exported 29 million tonnes of wheat in the current season, according to Rusagrotrans, the country's largest rail grain carrier.
In Russia, grain exports are allowed without quotas from July to February, while quotas are implemented between February 15 and June 30, regulating more than 200 domestic traders authorized to sell grain internationally.
Source: Olga Popova and Gleb Bryanki | Notícias Agrícolas
