Russian grain exports slow further on cold weather complications

Grain loadings from Russia have finally started to show signs of a slowdown as colder weather starts to take hold and rein in the record-breaking pace of exports, data from the ministry of agriculture showed Monday.

Total grain exports in the seven days to January 24 hit 777,000 mt - the second-lowest weekly total since exports started in earnest back in August.

Wheat loadings also fell to the second-lowest weekly total in the 2017/18 marketing year at 618,000 mt, barley exports of 31,000 mt were the lowest weekly total seen, while corn sales at 124,000 mt were largely in line with previous weeks.

Despite the recent slowdown, total exports for 2017/18 remain well ahead of the previous marketing year, with wheat sales up 35.1% at 23.26 million mt, barley sales up 88.2% at 3.68 million mt, and corn sales down 4.1% at 2.66 million mt.

Total grain sales are 34.9% higher year-on-year at 29.8 million mt.

Colder weather in the Black Sea is the primary reason for the pace of sales slowing, with port authorities on the Azov Sea requiring ice breaker assistance for departing vessels since January 14, with additional restrictions put in place on January 24.

“Strong eastern winds and below zero temperatures [are creating] additional difficulties and delays,” wrote Russian logistics agency Nitro Shipping in a recent research note.

January is a traditional time for slowdowns in Russian grain exports, as poor weather and national holidays delay loading.

Russia has been grappling with exporting a record-breaking crop this year, having grown more grains than ever before.

Despite fears of bottlenecking at key rail and port locations, sales to date have surpassed the expectations of many in the industry, as Russian wheat has displaced other major exporters on the global market.

Last week the ministry of agriculture forecast grain exports to reach 45-47 million mt.