Russian Wheat Loading For Brazil
After months of protracted negotiations Russian wheat has finally got a foothold in Brazil after an eight year absence.
The Russian arm of Bunge, Bunge CIS, is currently loading a 25,000 MT cargo of Russian milling wheat at the port of Novorossiysk destined for Brazil, according to media reports.
The Brazilian and Russian governments have been keen to forge closer ties, possibly involving Russia taking back Brazilian poultry, in exchange for looking upon Russian grain more favourably.
In the light of another year of sharply lower wheat production from Argentina, it has even been suggested that Brazil might waive it's import tariff for wheat imported from outside the Mercosur trade bloc, specifically for Russian grain.
Whilst this hasn't happened yet, Russian wheat has still managed to overcome geographical advantages for US grain and price itself into the Brazilian market. Flour producers there would much rather have US wheat from a quality angle, so it will be interesting to see how this first shipment in almost a decade goes.
Rosstat say that Russia's wheat harvest finally came in at 62 MMT in clean weight in 2009, 2.7% down on production of 63.7 MMT in 2008. Once again that is significantly higher than official estimates earlier in the season.
The Russian arm of Bunge, Bunge CIS, is currently loading a 25,000 MT cargo of Russian milling wheat at the port of Novorossiysk destined for Brazil, according to media reports.
The Brazilian and Russian governments have been keen to forge closer ties, possibly involving Russia taking back Brazilian poultry, in exchange for looking upon Russian grain more favourably.
In the light of another year of sharply lower wheat production from Argentina, it has even been suggested that Brazil might waive it's import tariff for wheat imported from outside the Mercosur trade bloc, specifically for Russian grain.
Whilst this hasn't happened yet, Russian wheat has still managed to overcome geographical advantages for US grain and price itself into the Brazilian market. Flour producers there would much rather have US wheat from a quality angle, so it will be interesting to see how this first shipment in almost a decade goes.
Rosstat say that Russia's wheat harvest finally came in at 62 MMT in clean weight in 2009, 2.7% down on production of 63.7 MMT in 2008. Once again that is significantly higher than official estimates earlier in the season.