Letters of credit (L/Cs) are flowing for Russian wheat exports after several weeks of very weak sales.

Difficulties obtaining L/Cs due to sanctions imposed on Russian banks over Moscow's actions in Ukraine had been suggested as one of the reasons why wheat exports had stalled.

Market return

It appears now that Russian wheat has returned to export markets due to a weak rouble and higher world prices.

Meanwhile, traders are reporting no difficulties in obtaining L/Cs for wheat sales according to local media.

Western sanctions do not apply to short tenor L/C transactions used for wheat sales, so business for Russia's wheat exporters appears to be returning to normal.

Strong demand

Egypt is a key customer, with its state grain buyer, the General Authority for Supply Commodities, reportedly buying substantial quantities of Russian wheat on L/C terms.

Domestic demand for grain in Russia is also strong, bolstered by Moscow's ban on most Western food imports in retaliation for the sanctions.

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