Russian Wheat Exports Plummet by Up to 60% Amid Port Disruptions

Russian wheat exports are expected to plummet by up to 60% in September, reaching a record low since 2010. According to Sovecon, Russia's analytics firm, shipments could total just 1.8-2.3 million metric tons, less than half of the figure from a year earlier.

The decline in exports is attributed to Ukrainian drones damaging terminals in the Sea of Azov and Black Sea, causing them to shut down. Exporters have turned to rail routes and ports in the Baltic while increasing shipments to Kazakhstan, other Central Asian countries, and Azerbaijan.

The domestic price of Russian wheat has fallen by more than 40% over the past year, with Class 5 wheat costing an average of 7,400 rubles per ton as of August 30. Andrei Sizov, Sovecon director, believes that shipments could begin to recover as alternative routes develop, but warns that agricultural producers may reduce planted areas next year if prices remain low.