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Cargill to stop exporting Russian grain

Cargill says it will stop exporting grain out of Russia on July 1. 

North Dakota State University Extension Grain Marketing Specialist Frayne Olson tells Brownfield this will affect Russia’s grain movement.

A report from the RBC Daily, a Russian media outlet, says Cargill has moved 2.2 million tons of Russia’s total grain production, about 4% of all Russian grain exports, in the current marketing year.

Olson says Russia’s agricultural exports haven’t been hurt as bad as Ukraine’s during the war.

“USDA is forecasting their wheat volumes to be up this year relative to last year, because they had a much larger crop. They have not only Russian companies in the export area, but other U.S. companies including ADM and Bunge.”

He says it is possible other U.S. food production companies could leave Russia, because moving grain out of the country is risky and expensive.

“There are risks involved in bringing vessels into and out of the Black Sea with all of the activity happening right now and from a credit standpoint, it’s getting very hard for Russian companies to access and source credit to buy and sell products.”

Export uncertainties in the Black Sea Region have provided some support for the wheat futures on Wednesday.