Russia Seen Expanding Wheat Exports to Sri Lanka and Madagascar

Russia expanded its exports of wheat to new customers including Sri Lanka and Madagascar in the current season, SovEcon said.

Congo also was a first-time buyer of Russian wheat in July, the Moscow-based researcher said today in a report on its website, without being more specific. A debut shipment to Mexico took place this month, according to SovEcon, which gave no further details. July’s deliveries exceeded 2 million metric tons, 13 percent more than a year earlier, the report showed.

Lower prices are fueling demand from grain-importing nations. Wheat slumped 17 percent this year in Chicago trading and corn tumbled 33 percent. Russia aims to export as much as 20 million tons of all grains in the 2013-14 season begun July 1, up from 15.7 million tons in the previous period, according to Agriculture Ministry data.

Turkey was July’s leading buyer of Russian wheat, followed by Egypt, Israel, Azerbaijan and Peru, according to SovEcon.

Exports in July were up 21 percent from a year earlier at about 2.6 million tons including all grains and legumes, as well as flour in grain-equivalent terms, the researcher said. Grain shipments will exceed 3 million tons this month, it said.

To contact the reporter on this story: Marina Sysoyeva in Moscow at msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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