A Cargill said this Wednesday that it will take another step back in the Russian market by ceasing to move grains from the main supplier of wheat at its export terminal starting in July, although its transport unit will continue to load grain from the country’s ports.
The move stoked concerns about global grain supplies disrupted by the 13-month war in the Black Sea granary region, lifting benchmark wheat futures prices from earlier losses.
Most international grain traders have stopped new investment in Russia since last year, following Moscow’s invasion of Ukraine, but have continued to export Russian wheat.
“As challenges related to grain export continue to mount, Cargill will stop lifting Russian grain for export in July 2023, after the 2022/2023 season ends,” the company said in an emailed statement.
“Lifting” refers to lifting grain onto export ships.
Cargill, which owns a stake in the grain terminal at the Black Sea port of Novorossiisk, did not specify whether it was selling the stake.
Chicago Board of Trade benchmark wheat futures rose to a one-month high on Wednesday and EU May mill wheat hit a two-week high as the news sparked jitters over grain flows from the biggest exporter. wheat.
“Russian state-owned exporters say they will be able to keep grains at the same pace, but major hedge funds that hold large short positions currently lack confidence in this,” Arlan Suderman, chief commodities economist at StoneX, said in a note to the market. .
O Ministry of Agriculture from the Russia had previously said that Cargill said it would stop its grain export activities from the beginning of next season.
“The cessation of its export activities in the Russian market will not affect the volume of domestic grain shipments abroad. The company’s grain export assets will continue to operate regardless of who manages them,” the Ministry of Agriculture said in a comment to Reuters.
In addition, grain trading company Viterra, owned by Swiss mining and trading giant Glencore, is planning to halt grain trading in Russia, Bloomberg News reported, citing sources familiar with the matter.
A spokesman for Viterra declined to comment but said a statement would be issued later.
Viterra and Cargill are among the biggest exporters of Russian wheat.
According to the RBC business newspaper, Cargill will export 2.2 million tonnes of Russian grain in the 2022/23 export season, or about 4% of Russia’s total grain exports.
Source: Moneytimes
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