Russia has announced a suspension of exports of wheat, barley, maize and rye until 1 July to protect its domestic market from shortages due to the coronavirus crisis. The export quota of 7 million tons of cereals between 1 April and 30 June has been exhausted. Russia, the world’s leading exporter of cereals, is concerned by this announcement, which has already put the players on a world market under stress. The drought in Europe and around the Black Sea and Ukraine’s decision to also freeze its wheat exports until 30 June reinforce this concern. While the International Grains Council believes that wheat production and stocks should increase during the 2020/2021 season, it does not rule out that a production accident could jeopardize its optimism. Russia’s restrictions run counter to the various calls from organizations such as the FAO and the WTO, which have pleaded in recent weeks for a continuation of world trade in order to limit the risks of price volatility.
Source: Ecofin Agency