Due to the war against Ukraine, Russia received a shortage of food and a ban on exports of grain and sugar

Russia's senseless war against a peaceful and free Ukraine continues to destroy Russia's economy, raising the dollar and food prices, and increasing the shortage of basic necessities. The dreams of Putin and the Russians about the restoration of the USSR will come true in the form of a total shortage of consumer goods due to the cessation of imports from the "bad" West.

The Russian government has temporarily banned the export of grain (wheat, meslin, rye, barley and corn) to the EAEU countries, as well as exports to third countries of white sugar until August 31 and raw cane sugar from March 15 to June 30. It is allowed to export grain within the previously established quota of 11 million tons.

From July 1 to March 10, 2021/22 MY Russia exported 28.1 million tons of grain, which is 30.3% lower than last year's rate (excluding exports to the EAEU countries). In particular, exports of wheat decreased by 30.9% to 23 million tons, barley - by 34.7% to 2.9 million tons, corn - by 21.7% to 1.8 million tons.

Traders expected that Russia would completely ban the export of grain to third countries, but it only closed the loophole to avoid restrictions on exports through the EAEU countries.

According to ICAR, Russia is gradually resuming wheat exports from Black Sea ports under previously concluded contracts. Prices for Russian wheat with 12.5% protein remain volatile and currently stand at $ 415 / t FOB. According to SovEkon estimates, Russian Black Sea terminals shipped 400,000 tons of wheat last week.

Russian farmers in the domestic market began to abandon previously concluded contracts due to a sharp rise in export and domestic demand prices.

The Ministry of Agrarian Policy of Ukraine reported sufficient stocks of grain and bread in the country. Humanitarian deliveries of food to cities under fire from Russian troops are now being actively organized. The government has introduced licensing for wheat, corn and sunflower oil exports, but exports through the Black and Azov ports have been blocked and small batches across the western border.

According to UN estimates, this year Ukraine will lose 30% of its corn and sunflower crops as a result of hostilities.

During the week of March 4-10, wheat exports from the United States decreased by 41% to 282.3 thousand tons, and in total in the season amounted to 16.2 million tons, which is 20% less than last year.

May futures in the US yesterday had the following dynamics:

• decreased by $ 3.77 / t to $ 402.8 / t for soft winter SRW wheat in Chicago,
• increased by $ 3.95 / t to $ 404.2 / t for winter winter HRW wheat in Kansas City,
• remained at $ 393.2 / t for durum HRS wheat in Minneapolis,
• fell $ 0.25 / t to $ 421.25 / t for Black Sea wheat in Chicago.