Russia. Flour exporters have focused on China

27.06.2018

Following a bumper wheat crop in 2017, Russian flour production also rose at the time. It gained 5% to 9.4 MMT against 8.9 MMT in 2016. However, some downturn in production is observed in 2018, reports UkrAgroConsult.

Flour production in Russia decreased 1% to 2.9 MMT in January-April 2018 against 3 MMT in the same period last year.

The export share in flour production is a mere 2%. However, flour exports from Russia are picking up pace. Their volume rose to 17 KMT in April that is up 2% from March and 64% more than in April 2017.

During the first ten months of MY 2017/18 (July - April), flour exports from Russia totaled 172.4 KMT that is already 13% more than in the whole of MY 2016/17.

The main end markets for Russian flour are Central and Western Asia, mostly former USSR countries such as Georgia, Tajikistan, Uzbekistan and Azerbaijan. 

The largest consumer of Russian flour is China. The country absorbs over 70% of all export shipments this season (42% in MY 2016/17). China imported 122.5 KMT of flour in July-April 2017/18 that is already 91% more than in the whole of MY 2016/17.

At the same time, the United Arab Emirates, the second largest flour importer of Russian flour in MY 2016/17, has actually stopped buying it this season.

UkrAgroConsult’s analysts note that China remains the largest end market for Ukrainian flour also. Exports to China continued rising. Ukraine shipped 112 KMT of flour to China during July-April 2017/18 that is already 30% more than in the whole of last season. Thus, China’s share in Ukrainian flour exports reached a record 30%.

Detailed information of flour, bran as well as starch market trends in Ukraine is available tosubscribers for weekly market report "Black Sea Grain" and for subscribers to “Online market review” by UkrAgroConsult.

 

UkrAgroConsult

 

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