Russia could harvest a record 100 million tons of wheat this year, according to consulting firm SovEcon, but wheat is piling up in local silos as Russia struggles to export large amounts of grain, according to Bloomberg, taken by Agerpres.

Russian farmers are preparing to finish harvesting a large wheat crop thanks to good weather conditions throughout the summer. Usually, a high harvest in the world’s largest wheat exporter will lead to lower prices on the world market.

But this season, export duties imposed by the Moscow government and logistical problems caused by Russia’s war in Ukraine have kept more than usual in the country.

“Storage has been a problem for some farmers for several months now. After 2017-18, we haven’t seen anything like this,” said SovEkon’s operational director Andriy Syzov.

Prices for Russian export wheat have recently become more competitive compared to wheat from other regions such as France and the US, meaning supplies could increase.

High prices and problems with the delivery of Russian goods, as well as the refusal of some insurance companies and banks from Russian raw materials after the invasion of Ukraine, limited exports at the beginning of this season.

Despite the fact that Russian food exports are not subject to sanctions, some institutions do not want to do business with Russia due to sanctions.

World wheat prices rose sharply after Russia’s blockade of Ukrainian ports undermined Ukraine’s wheat exports, pushing up food prices.

Although an agreement to unblock Ukrainian ports in July helped lower prices, the escalation of the war in Ukraine has pushed wheat prices back to pre-agreement levels.

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