Russian wheat prices rose for the fourth year in a row last week amid higher grain prices in Chicago and Paris inflated by concerns about further export restrictions from the world's largest wheat exporter, analysts said Monday.
Russia could change a formula it uses to calculate its grain export taxes in the event of a sharp rise in prices and plans to set a grain export quota in the first half of 2022 to help secure domestic supplies, the Ministry of Agriculture said last week.
Russian wheat with a protein content of 12.5%, loaded at Black Sea ports for delivery in the second half of November, cost $ 328 per tonne of FOB late last week, $ 2 more than the previous week, ICAR reported.
Another consulting firm, Sovecon, increased wheat by $ 5 to $ 332 per tonne while barley rose by $ 3 to $ 296 per tonne.
The formula for the wheat export tax could change if prices hit $ 400 per ton, the Department of Agriculture said last week.
“The quota was not news and was expected by the market.A threat to raise the tax was something new. At the moment, we consider this risk to be low, ”said Sovecon in a press release.
Russian wheat exports have declined 34% since the start of the 2021/22 marketing season on July 1 due to a smaller crop and the export tax, which will rise to $ 77.1 per ton this week.
Source
Hansa Terminhandel GmbH
