World grain traders stopped exporting grain from Russia
Grain traders Cargill, Viterra, and Louis Dreyfus stopped exporting Russian grain on July 1. This was reported by the Russian Interfax.
According to Vladimir Petrichenko, CEO of the Russian company ProZerno, the market has actually “already integrated the exit of global grain traders, and straws have been laid everywhere where necessary.” According to his estimates, the share of these companies in Russian grain exports is 16%.
He assumes that the former subsidiaries of grain traders that have left the Russian market, such as MZK Export (formerly Viterra Rus), will essentially continue to perform their duties, “and Viterra, which is merging with Bunge, will buy grain from it on FOB terms.”
“This is not necessarily the case, but the mechanism can work in this way,” Petrichenko said.
Viterra Rus, the Russian subsidiary of grain trader Viterra (Glencore’s agricultural division), will continue to operate in Russia under a new name. Viterra’s operating business in Russia is to be transferred to local management.
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