Russian wheat exports up 26% as logistics defy bottleneck fears

With a record-breaking harvest, Russian grain exports are defying concerns over logistics bottlenecks as exports are up 26.3% on year| to 14.773 million mt in the week to November 15, data from the Ministry of Agriculture showed Monday.

Total grain exports are at 19.118 million mt, 29.5% higher than at the same stage in the 2016/17 marketing year. Barley sales are almost twice as big as last year at 2.777 million mt, while corn sales are down 0.7% at 1.444 million mt.

Despite the success to date, concerns over export capacity on the Black Sea persist.

Difficulties in getting enough rail and road haulage to the ports is a consistent headache for exporters, while the number of berths available for vessels at Novorossiysk has come under pressure from the pace and volume of sales this marketing year.

Winter will be the major test for exporters, with holidays effectively closing the export market for two weeks at the start of January.

Deteriorating weather conditions will also put pressure on shipping, with strong winds and ice in the Azov Sea and Black Sea making the operating environment treacherous each year.