Russia Exports $125 Million Worth of Grain to China in Q1 2024

Russia exported grain worth $125 million to China in the first quarter of 2024, according to data from the APK-Inform Information Agency. This significant export volume comes amidst a broader trend of shifting grain trade dynamics between China and other major exporters.

In the same period, China's soybean imports from the United States declined by 50% compared to the previous year, while imports from Brazil surged by an impressive 155%. Additionally, China's corn imports from Brazil jumped 72% in March, while arrivals from the U.S. fell 78%. These figures highlight the evolving landscape of global grain trade and the strengthening ties between Russia and China in the agricultural sector.

Russian President Vladimir Putin has ordered the government to present proposals by July 1 to facilitate grain trading with other BRICS countries, including India, China, Brazil, and South Africa. The proposal seeks to allow buyers to purchase directly from producers and provide additional support measures for Russian farmers. This move emphasizes Russia's efforts to expand its agricultural exports and forge stronger partnerships with emerging economies.

Why this matters: The substantial grain exports from Russia to China in Q1 2024 reflect the growing importance of the Russia-China agricultural trade relationship. As global trade patterns shift and geopolitical dynamics evolve, the strengthening ties between these two major players could have significant implications for the global food supply chain and the balance of power in the international grain market.

Despite the strong performance of Russian grain exports to China, the country's wheat export prices decreased slightly last week to $208 per metric ton due to active shipments and an expansion of the export quota for Russian grain. However, dry weather has begun to affect harvest forecasts, with the Sovecon agriculture consultancy downgrading its 2024 wheat crop forecast by 1 million metric tons to 93 million metric tons. Despite this, Russia's wheat exports in April reached a record-high of 4.6 million metric tons, and the IKAR agriculture consultancy has raised its Russian 2023/2024 wheat export forecast to 53 million metric tons.

Key Takeaways

• Russia exported $125M of grain to China in Q1 2024, a significant volume.
• China's soybean imports from US fell 50%, while imports from Brazil surged 155%.
• Russia-China agricultural trade strengthens as Putin seeks to expand grain exports to BRICS.
• Russia's wheat export prices fell slightly, but exports reached a record high in April 2024.
• Dry weather affects Russia's 2024 wheat crop forecast, but export forecast increased to 53M MT.