Russia's Grain Exports Plummet Amid New Season Challenges

Russia's grain exports have taken a significant hit at the start of the new season, according to the Foreign Intelligence Service of Ukraine. Between August 1-20, Russia shipped around 1.4 million tons of grain, a decline of 2.5 times compared to the same period last year. Wheat shipments were even more severely affected, falling by 2.6 times over the same period.

The reduced export volumes are expected to continue into September, with predicted wheat exports totaling between 1.8-2.3 million tons, down 52.1-62.5% from last year's levels. This would be the lowest level for the month since 2010. As a result, significant quantities of the new crop remain on the domestic market.

The surplus grain is putting pressure on prices in Russia, with declines ranging from 3.3-8.5% over the past week. Some prices have fallen by as much as 40% compared to last year's levels. In response, measures are being considered to support the market, including government grain purchases and subsidies.