Russia is expected to become the largest wheat exporter this season, dominating the Egyptian market for much of the past eight months. Egypt imports more wheat than any other country and its tenders are seen as the backbone of international demand.
But Russia is losing its competitiveness in the world's largest wheat market, and its
exporters lost sales in Egypt's last three tenders on cheaper grain supplies from Romania, France and Ukraine as the ruble appreciates.
Russia is the world's largest energy exporter, and the rebound in oil prices pushed the ruble to its highest levels in three months.
Weak demand in international grain markets means that Russian wheat exporters are reluctant to raise the price of their grain in dollars, while its value is increasing because they buy grain from farmers in rubles.
Exports of Russian wheat undermine the strengthening of the ruble
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