7 February 2022, 10:37, Grain

China derestricts grain imports from Russia, other origins share may shrink: Agritel

China authorized wheat and barley exports from all Russian regions, opening its market to grain exports from Russian deepwater ports, the Agritel consultancy writes.

Previously only seven regions could export grains to China, and the list didn't include Russia’s leading grain-producing regions. The Russian exports could take market share from European, North American, and Ukrainian origins, analysts say.

"However, Russian exports to China are unlikely to rise significantly this marketing year, being limited by test shipments," the report reads.

All commodity prices in Chicago rose sharply on Friday, Feb. 4, with funds buying back positions ahead of Wednesday's USDA report. Geopolitics remains a matter of concern for all traders, with a continued build-up of Russian troops on the Ukrainian border.

For context, China was the largest importer of Ukrainian grains in 12M 2021. The dollar value worth of commodities shipped is estimated at USD 2.552 bln.

Learn more: TOP 14 Wheat Exporters From Ukraine in 10M 2021

Grains export from Ukraine since the start of 2021/22 has made up 38.6 mln t. As of Feb. 2, the supply is 31.6% up YoY.

Wheat export from Ukraine in 2021/22 was limited to 25.3 mln t. The Memorandum of Understanding was signed by the Agrarian Ministry and grain market participants. The Government also considers milling wheat export from the country. The decision was reported to be taken in January, but it has not happened yet.