Russian Wheat Exports in August Expected to Fall to 2.2 Million Tons

Russian wheat exports in August 2023 may decrease to 2.2 million tons, marking the lowest figure for this month since 2010. The halt of key grain terminals has led to a surplus of grain in Russia, falling prices, and losses for farmers. The projected export volume is half of that in August 2022, when 4.5 million tons were shipped. The decline compared to the average of the last five years could reach 56%. The main issue for exporters has been maritime logistics: the shutdown of three grain terminals in Novorossiysk, through which about 25 million tons of exports passed, and the cessation of operations at the terminal in Taman. If terminal operations do not resume by the end of August, exports could fall even below 2.2 million tons. Domestic grain prices have dropped by 18% since June, forcing farmers to sell grain below production costs. The shutdown of terminals has also negatively impacted freight carriers in southern Russia, where company revenues have decreased by up to 90%.

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