According to the analyst, there are three main causes of failure of Brazil to buy Russian grain.

First, traditionally, the wheat imports are private Brazilian company, not the state, who have the unfortunate experience of test purchasing in 2010 the Second reason L. Pacheco called the relatively low quality of Russian wheat. According to the expert, the average protein level in Russian wheat is 10-12%, which is insufficient for cooking pizza and confectionery.

Thirdly, according to the analyst, Russian wheat less competitive in comparison with the Argentine grain. Thus, according to Trigo & Farinhas, the Russian wheat FOB at Black sea ports this week were offered at a price of $192 per ton, while the Argentine - at $176 per ton on the same conditions. In addition, an important advantage of imports from Argentina are significantly lower freight cost.

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