Russia new player on Brazilian wheat market
After an eight-year break Russian grains again try to take their own place on the Brazilian market. Global grain trader Bunge's Russian subsidiary Bunge CIS Ltd loaded 25,000 tonnes of milling wheat at Novorossiysk for export to Brazil.
According to Natalia Zjylina, assistant of the general director, Bunge CIS provides the first test shipment of Russian wheat, because the commodity is a new item on the Brazilian market.
At the end of the last year, Russia and Brazil signed a memorandum concerning the favourable treatment for shipment of Russian grains to Brazilian processors.
Neighboring Argentina faced a harvest failure and the deficit of import grains on Brazilian market was estimated at 6.5 mln tonnes.
According to Igor Pavenskiy, head of the analytical center CJSC Rusagrotrans, Russia has good opportunities on the Brazilian market.
The USA, the main supplier of wheat to Brazil, offers at high prices compared to Russian wheat prices.
At the beginning of January, Russian wheat prices in Brazil totaled $250 per tonne, American wheat – $260-$270 per tonne, said Pavenskiy. Cheap freight prices still make Russian grains competitive.
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