Russia's proposal to use its wheat stocks to supply Syria as aid could reduce international demand from the Middle East, which is estimated at more than 1 million tonnes this season.
This could exacerbate market glut, which has already pushed prices to near 10-year lows, as bumper crops and exports from Russia, the largest supplier, only make matters worse. If humanitarian aid comes from the country with the largest volume, then it will not benefit international grain traders, ”experts say.
Deputy Prime Minister of Russia Arkady Dvorkovich instructed the government to prepare proposals on the use of wheat reserves to help Syria. Syria was supposed to import 1.3 million tonnes of wheat in the season that began in July, according to the US Department of Agriculture.
In addition, the offer came at a time when sales in Egypt, the largest wheat buyer, were not as rosy.
Humanitarian supplies of Russian wheat to Syria will negatively affect the world grain market
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Azovpromstal® 14 September 2016 г. 12:43 |
