In the fourth subsequent week, Russian wheat export prices drop, a sharp reversal of good fortune for farmers from one of the world’s largest exporters of wheat.
According to analysts, the crop glut comes amid lesser prices and weak demand in Paris and Chicago. The inability of lifting the prospects of this rural business got aggravated further with export restrictions that were announced earlier this year.
Now, the measures were taken to battle the country’s rising food inflation, which has deepened farmers’ struggles and slashing their incomes. Notably, there is euphoria over the predictions of this year’s wheat harvest, which is an estimated 80 million tons, one of Russia’s largest ever.
In a statement, the Head of the Russian grain exporters union, Edward Zernin said that the smaller farmers are bearing the brunt by looking to switch to spring crops—only to find limited seed supply.
Large harvests or slowdown in Russian wheat crop plantations can affect the country’s farmers and its long-term growth if coupled with decreased access to export markets.
Last week, the Russian wheat supply in April loaded from Black Sea ports was at $257 a tonne free on board—a reduction of $16 from the previous week.