Egypt to Buy 1 Million Tons of Russian Wheat


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Grain exports from the Russian Federation, according to MSZ estimates, have increased and will amount to 58.6 million tons (+2 million compared to last month’s forecast). Wheat exports also increased by 2 million tons, estimated at 48.6 million tons.

Negotiations between Egypt and Russia on the supply of 1 million tons of Wheat are underway. The parties are discussing the Wheat supply this season, but it is still unclear how close they are to concluding a deal. In early September, Egyptian authorities announced they had agreed to purchase 480,000 tons of Wheat from Russia during direct negotiations. The agreement was concluded for $270 per ton, including freight.

In terms of Barley, Russia exported 1.76 million tons of Barley in the last two months. According to AgFlow data, the top markets were Saudi Arabia (0.64 million tons), Libya (0.5 million tons), Iran (0.22 million tons), and Tunisia (0.13 million tons). The following markets were Jordan (60,720 tons), Kuwait (54,000 tons), Israel (50,785 tons), and Turkey (50,000 tons). The average volume of shipments was 104,000 tons.

Egypt to Buy 1 Million Tons of Russian Wheat

Grain Harvest Situation in Russia

As of 15 September, Russian farmers have harvested more than 123 million tons of Grain. Harvesting continues, and 130 million tons will be completed.

“Accordingly, we have already exceeded the previously announced forecast. However, Grains are now being harvested in the Urals, Siberia, and the Far East, where the weather conditions are quite difficult. But we understand that we will fulfill the volume of 130 million tons indicated by the President,” The head of the Ministry of Agriculture, Dmitry Patrushev, said.

“The Grain harvest 2023 will make it possible to fully supply the domestic market, as well as supply up to 60 million tons of Grain abroad this season,” he added. Previously, the Ministry of Agriculture announced the export potential for this agricultural year at 55 million tons.

According to him, the collection of other crops is also progressing dynamically. “We expect that the volumes of sugar beets and oilseeds will not be lower than the average for five years,” Patrushev said. The minister also noted that winter sowing is underway in the country; its area now amounts to about 9 million hectares. Russia plans to reach a figure of 20 million hectares, 1 million hectares more than last year.

Productivity is lower than last year – 32.9 c/ha versus 33.9 c/ha. Wheat was threshed from an area of 23.9 million hectares (27.2 million hectares), and 86.5 million tons (100.3 million tons) were threshed with a yield of 36.1 c/ha (36.9 c/ha).

Barley was harvested from 7 million hectares (7.9 million hectares), 20.5 million tons (23.9 million tons) were collected, and the yield was 29.4 c/ha (30.4 c/ha).

Corn for Grain was threshed from 161.2 thousand hectares (137.6 thousand hectares), and 958.7 thousand tons (780.8 thousand tons) were threshed with a yield of 59.5 c/ha (56.7 c/ha).

Rice was threshed from 8.4 thousand hectares (5.5 thousand hectares), 55.3 thousand tons (35 thousand tons) were collected, and the yield was 65.9 c/ha (63.8 c/ha).

Sunflower was threshed from 611.8 thousand hectares (674.4 thousand hectares), and 1.4 million tons (1.5 million tons) were threshed with a yield of 22.8 c/ha (22 c/ha).

Rapeseed was harvested from 1.1 million hectares (1.4 million hectares), 2.7 million tons (3.2 million tons) were threshed, and the yield was 23.8 c/ha (22.7 c/ha).

Soybeans were harvested from 223.7 thousand hectares (261.5 thousand hectares), and 462.8 thousand tons (559.3 thousand tons) were collected with a yield of 20.7 c/ha (21.4 c/ha).

Exports, on the other hand, are a more intricate dance. Algeria’s wheat exports are minimal but tell a story of opportunity and challenge. The country’s potential to export quality wheat is like a seed waiting to sprout, but it needs the right environment.

What’s holding it back? Infrastructure, investment, and international competition. It’s like trying to win a race with weights on your legs. The potential is there, but the path is fraught with obstacles.

Balancing imports and domestic production are like walking a tightrope. Too much reliance on imports can undermine local farmers, while insufficient imports can lead to shortages and price spikes. It’s a delicate dance, isn’t it?

And what about the global market? Fluctuations in international wheat prices, trade agreements, and geopolitical tensions can instantly turn the tide. It’s like sailing in a storm; you need skill, foresight, and a bit of luck.

Other sources : ZERNO

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