For the first time since mid-October, domestic prices for wheat began to grow in Russia, having increased last week from 10.5–11.2K RUR ($ 157.89 - 168.42) up to 10.6–11.4K RUR ($ 159.39 - 171.42) per ton. Quotes were supported by rising demand on the eve of the New Year holidays and a slowdown in the market. In the short term, prices may still rise due to the beginning of a slowdown in the pace of grain exports.
Despite some slowdown in growth, the agricultural sector remains one of the most interesting areas for investments. However, the investment climate in Russia as a whole remains not the most favorable, potential investors - in particular foreign ones - see risks, first of all, in the possible expansion and strengthening of sanctions. True, if sanctions and the food embargo that followed them helped the agricultural sector grow, now the effect has been exhausted. In contrast to the period when import substitution was largely funded by the consumer, today the industry is close to overproduction in some sectors, which reinforces the need to increase exports of agricultural products.
Based on kvedomosti.ru.
