Russia continues to restrict grain supplies by denying export certificates and restricting railway deliveries.
In this situation, the buyers may turn to other European countries, while the U.S. is too expensive. Romania could be one of the winners, along with Bulgaria, partly France, partly Germany and even Baltics.
According to Stefan Vogel, head of agricultural commodities research, “a lot of people are seeing the uncertainty in Russia and trying to secure some quantities in other origins”, Bloomberg informs.
Russia, the world’s fourth-biggest wheat exporter, is battling a currency crisis that has weakened the ruble by about 45 percent this year and raised the cost of bread. Russia has already shipped 15 million to 16 million metric tons of wheat out of the 22 million tons expected by the U.S. Department of Agriculture for the season, Vogel said.
U.S. prices may need to fall before the country sees an uptick in business, said Christopher Narayanan, the head of agricultural research at Societe Generale SA in New York. Export sales since the marketing year began have dropped 24 percent from last year to 17.9 million tons, according to the USDA.