Russian export prices for wheat rise ahead of export tax

MOSCOW – December 29, 2020

Russian wheat export prices rose for the second consecutive week last week ahead of an upcoming wheat export tax, analysts said on Monday, adding that trade was thin before the long New Year holiday.

Russian wheat with 12.5% protein loading from Black Sea ports for supply before mid-February was at $262 a tonne on a free-on-board (FOB) basis at the end of last week, up $5 from the week before.

Soviet Ag. said wheat and barley export prices rose by $2 to $261 a tonne and $220 a tonne, respectively.

Russia will be on public holiday on Jan 1-10.

The Agency downgraded its estimate for Russia’s 2020/21 wheat exports in a separate note due to the wheat export tax which Russia plans from Feb. 15 to June 30.

An other Russian Agriculture Consultancy, said that wheat for supply after mid-February, when the export tax is launched, was quoted at $270 per tonne.

A delay in getting Russian customs papers, reported by some grain traders to Reuters earlier this month, has become less widespread and has been reduced to 3-5 days.

There are, however, delays in providing grain railcars for transportation to southern export ports, it said.

“Some traders cannot book railcars for January but we doubt that there is a nationwide plot to halt exports before mid-February,” Soviet Ag said.

 Product:            Price at the end       Change from week
                        of last week:                earlier
 - Domestic 3rd      15,075 roubles/t               -25 rbls
 class wheat,                ($204.7)  
 European part of                      
 Russia, excludes                      
 delivery                              
 (Soviet Ag)                             
 - Sunflower seeds      33,275 rbls/t            -1,975 rbls
 (Soviet Ag)                             
 - Domestic             83,500 rbls/t            -1,325 rbls
 sunflower oil                         
 (Soviet Ag)                             
 - export                    $1,170/t                   +$30
 sunflower oil                         
 (Soviet Ag)                             
 - export                    $1,172/t                   +$12
 sunflower oil                         
 (Russian Ag)                                
 - Soybeans             38,100 rbls/t              -100 rbls
 (Soviet Ag)                             
 - white sugar,                $481/t                   -$26
 Russia's south                        
 (Russian Ag)                                
 ($1 = 73.6300 roubles)