Russian wheat shipments to Indonesia increased threefold

23.05.2018

Russian wheat exports during the first nine months (July – March) of MY 2017/18 were up 41% on the year. They totaled some 30.8 MMT, i.e. already 14% more than in the whole of MY 2016/17, reports UkrAgroConsult.

Russia exported roughly 3.85 MMT of wheat in March 2018 that is up 32% from March 2017.

Apart from a boost in wheat supplies to its traditional export destinations, Russia substantially increased deliveries to markets insufficiently tapped before. At the time, shipments to Egypt – the traditional top importer of Russian wheat grew that is already 4% more than in the whole of MY 2016/17. Turkey – the second biggest importer of Russian wheat – absorbed 63% more than in the whole of MT 2016/17.

In the period under review, supplies to the market of Indonesia increased threefold to 1.14 MMT versus 344 KMT in the whole of MY 2016/17. The top five importers now include Vietnam.

Regionally, 47% of Russian wheat exports are absorbed by Asian countries. Following Turkey, Vietnam and Indonesia, the next biggest consumer of Russian wheat is Bangladesh, which imported 1.71 MMT this season.

Exports from Russia continued at a record pace also in April and May. According to preliminary information of market participants, about 36 MMT of wheat had been exported from the country by May 20.

UkrAgroConsult notes that wheat stocks as of April 1, 2018 remained huge at 12 MMT. This level is 18.9% more than at the same date of last year.

As for 2018/19 season prospects, according to the Agriculture Ministry of Russia, the country may gather 105-110 MMT of grains, while export potential will remain at 35-40 MMT due to 16% higher stocks.

More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop as well as crop conditions and progress in planting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Grain" by UkrAgroConsult.

 

UkrAgroConsult

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