Russia's July-November grain exports are expected to reach a record high thanks to a resumption in sales to Egypt, the world's largest wheat importer, the SovEcon agriculture consultancy said on Tuesday. Egypt has resumed active wheat purchases after scrapping a rule banning shipments containing a common fungus in late September, thus supporting demand for Russia's record 2016 grain crop.
Russia may increase its grain exports to 4 million tonnes in November from 3.7 million tonnes in October, SovEcon said. The country is trying to expand its current markets and find new customers for its cereals because it needs to raise 2016/17 grain exports by 5-6 million tonnes compared with the previous marketing year, which ended on June 30, to avoid a glut in the domestic market.
"The less time left until the end of the season, the more difficult this task becomes," the consultancy added. "It is clear that there is not much hope on support from the rouble as opposed to the previous season." In 2015/16, the rouble's weakening against the dollar supported grain exports. Russia has already increased grain supplies to Bangladesh and Morocco this year. It is also in talks with Thailand, Indonesia, Saudi Arabia, Iraq and Venezuela over its grain supplies, SovEcon said.