We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry. current time
Russian Wheat Prices Fall Below $100/T as August Exports Drop 56%
Russia’s wheat market is facing an unusual divergence from global trends, with domestic prices falling sharply even as international wheat values continue to strengthen. In parts of southern Russia, Class 3 wheat is now being purchased at prices starting around RUB 8,200 per tonne, equivalent to less than $100 a tonne. The steep decline has been driven largely by excess grain availability and limited export movement through the Azov-Black Sea ports.
The situation stands in stark contrast to international markets. Wheat futures have gained roughly 16.5% over the past month, while US wheat prices were around $283 a tonne in mid-August. At the same time, Russian wheat at Novorossiysk was trading near $215 a tonne, highlighting the widening gap between domestic and global markets.
The main pressure point is Russia’s export infrastructure. Disruptions and restrictions affecting port operations have slowed shipments and left substantial quantities of the newly harvested crop inside the country. With grain arriving faster than it can be moved into overseas markets, domestic supplies have expanded rapidly, forcing buyers to lower procurement prices.
Export volumes have consequently dropped to multi-year lows. Russia shipped about 2 million tonnes of wheat in August, representing a decline of 56% from the same month last year and around 60% below the recent five-year average. The outlook for September remains weak, with shipments estimated at only 1.8–2.3 million tonnes, compared with 4.8 million tonnes a year earlier. Such a level would mark the weakest September performance since 2010.
The widening disconnect between international prices and Russian farm-gate values is creating a severe squeeze for producers. With limited export channels and stocks building domestically, agricultural groups are pushing for a reduction in winter wheat acreage to avoid an even larger surplus during the next marketing season.
The impact is expected to be particularly severe for small and medium-sized farms. Unlike large agricultural companies, many smaller producers have limited cash reserves, inadequate storage facilities and less flexibility to hold grain while waiting for better prices. For some, selling immediately at depressed prices has become necessary to generate funds for operating expenses and the upcoming planting season. This could leave already strained producers with weaker finances just as they prepare for the next crop cycle.
