Russian wheat prices rose for the sixth consecutive year last week. The reason for this is strong export demand and the rally in global benchmarks.
Russian wheat from Black Sea ports with a protein content of 12.5% for delivery in the first half of December was US $ 340 per tonne of fob at the end of last week, US $ 6 more than the previous week, the consulting firm IKAR said.
Traders are focusing on spot sales as rising government taxes make forward sales difficult, ICAR said.
Russian wheat exports have declined 35% since the start of the 2021/22 marketing season on July 1 due to a smaller crop and export tax, which will rise to $ 80.8 per ton this week. The tax is based on an indicative price of USD 315.5 per tonne.
"Russia is slightly changing its approach to calculating export tax," said Sovecon analysts. They add that the updated system could reduce the lag between the actual market price and the indicative price index.
"The contracts for pre-sales for later delivery dates are now excluded from the price index calculation after their execution.Before that, they remained in the index calculation base until the end of the shipping deadline set by an exporter when registering the contract, "said Sovecon.
Source
Hansa Terminhandel GmbH