The Russian export tax on grains has raised all prices

MOSCOW – January 19, 2021

Russian wheat export prices rose sharply last week ahead of a new export tax imposed by one of the world’s largest wheat exporters from mid-February.

Moscow is trying to curb domestic food inflation triggered by the COVID-19 crisis by introducing a range of grain export taxes, with the wheat export tax of 25 euros a tonne from Feb. 15 to March 1 set to double from the start of March.

Russian wheat with 12.5% protein loading from Black Sea ports for supply before mid-February was at $298 a tonne free on board (FOB) at the end of last week, up $23 from the previous week.

Soviet Ag, said barley gained $11 to $231 a tonne.

Many traders are in a hurry to get grain and ship it before February 15.

Russian Ag on Monday cut its estimate for Russia’s 2020/21 wheat exports.

Risks for Russia’s 2021 grain crop remain high despite good snow or rains in many winter wheat regions in the first half of January, however, cold weather expected in the south this week poses risks if it persist.

 Product:            Price at the end  Change from late 2020
                        of last week:  
 - Domestic 3rd      15,550 roubles/t              +475 rbls
 class wheat,                  ($209)  
 European part of                      
 Russia, excludes                      
 delivery                              
 (Soviet Ag)                             
 - Sunflower seeds      35,175 rbls/t            +1,900 rbls
 (Soviet Ag)                             
 - Domestic             87,675 rbls/t            +4,175 rbls
 sunflower oil                         
 (Soviet Ag)                             
 - export                    $1,260/t                   +$90
 sunflower oil                         
 (Soviet Ag)                             
 - Soybeans             38,700 rbls/t              +600 rbls
 (Soviet Ag)                             
 - white sugar,                $507/t                   +$18
 Russia's south                        
 (Russian Ag)                                
 ($1 = 0.8290 euros)
($1 = 74.2450 roubles)

Source: Reuters