World grain traders stopped the export of Russian grain

From July 1, global grain traders stopped exporting Russian grain.

Global grain traders —Cargill, Viterra, Louis Dreyfus  — have stopped exporting Russian grain since July 1, rossMI reports.

The company informed the Ministry of Agriculture of the Russian Federation about its decision to leave the Russian market in March.

According to Russian experts, the exit of global grain traders may seriously affect the shipment of Russian grain in the Black Sea, where their combined share was 20%. These companies exported about 13% through the Kavkaz port.

Competitiveness at the level of sales by farmers in the Russian Federation may suffer if state companies take the place of large grain traders.

Also, the Russians assume that perhaps the former “subsidiaries” of foreign companies (for example, “MZK Export” – the former “Viterra Rus”) will fulfill their former duties, and Viterra, which merges with Bunge, will buy grain from it on FOB terms .

It will be recalled that in the spring global traders Cargill, Viterra and Louis Dreyfus announced that they would leave the Russian market in the summer.

In the current season, Cargill will export approximately 2.2 million tons of grain – almost 4% of all Russian grain exports. In terms of shipments, the company ranks sixth among Russian exporters of agricultural products.

Viterra is part of the Glencore holding. In the Russian Federation, Viterra, together with the structure of the VTB group — Demetra-Holding LLC — owns the specialized grain terminal Taman Grain Terminal Complex LLC. Viterra also owns a grain terminal in the port of Rostov-on-Don.

Louis Dreyfus is the tenth largest exporter of Russian grain. In the current season, the company has already shipped 2.96 million tons of grain from the Russian Federation, thereby taking the 4th place among exporters.