Russia tightens grip on grain market as wheat prices surge

Russia is increasing its tight grip on the grain industry, prompting consolidation among fewer firms amid concerns over global grain supply, Bloomberg reported on Sunday.

Major Western merchants withdrew due to government pressure, leaving four companies responsible for three-quarters of grain exports from Russia’s Black Sea terminals.

This consolidation surged after President Putin’s Ukraine invasion, enhancing Moscow’s influence over wheat supplies. Even private Russian exporters face pressure, exemplified by a dispute involving TD Rif, now Rodnie Polya LLC, whose cargoes were reportedly blocked.

Moscow targets assets owned by local tycoons and units of overseas companies amidst heightened state intervention in the economy.

Western traders face challenges in obtaining information on Russian crop volumes, raising concerns amid decreased wheat exports.

Benchmark wheat prices have rallied but remain below a record set in 2022.