Russia is preparing for a record harvest. 100 million tons of wheat

Russia may record a bountiful harvest of wheat this year, but this will not translate into an increase in exports necessary to fight the global food crisis.

The wheat harvest in Russia may reach a record 100 million tonnes. The data was provided by SovEcon, a Black Sea grain and oilseed research company. Russia is the world’s largest exporter of wheat, accounting for around one fifth of the world’s wheat exports.

SovEcon’s forecast is 33 percent an increase over last year’s wheat harvest in the country, which amounted to over 75 million tons.

“But these huge harvests do not fully translate into huge exports,” Andrei Sizov, Managing Director of SovEcon told Bloomberg. Issues such as higher taxes on exports and Logistical bottlenecks due to the war in Ukraine leave Russian wheat stuck in the country.

Companies can also boycott or be extremely cautious in trading with the country.

Although food supplies are exempt from Western sanctions in support of food security, bankers and insurers are cautious in doing business with Russia, while shipping lines are unwilling to risk sending their ships to the conflict zone, said Aleksandra Prokopienko, an independent analyst.

See also: “Russia uses wheat as a weapon.” There are no illusions in Brussels

Intergovernmental International Grain Council forecasts global wheat production this year at 792 million tons a year. This is more than the forecast of global consumption of 785 million tonnes.

Benchmark wheat futures contracts on the Chicago Board of Trade are up about 20 percent this year, after jumping almost 70 percent to $ 12.94. for a bushel (27 kg) in March.

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