Russia bounces wheat prices

Published 2020년 12월 14일

Tridge summary

Russia has seen its second best wheat crop ever, with over 131 million tonnes, but has only exported 23.5 million tonnes due to four years of no response to foreign demand. This has led to a significant increase in food prices for Russian consumers, with cereals up 21%, bread 5%, and pasta 8%. In response, Russia is considering a quota or tax to limit wheat exports. Meanwhile, global wheat availability is expected to decrease due to very dry sowing conditions in Russia and the United States, as well as record demand from importing countries like Jordan, Turkey, the Philippines, South Korea, Japan, and unexpected demand from Pakistan and China. This has caused wheat prices to rebound, with a record of world wheat imports expected for 2020-2021.

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Original content

Russia has the second best wheat crop in its history, over 131 million tonnes. But it also responded as it had not done for four years to foreign demand, exporting 23 and a half million tonnes of wheat. Unfortunately this has turned against the Russian consumer. Food prices have, according to the National Statistical Office, climbed 21% for cereals, 5% for bread, 8% for pasta. Tax of 27 euros per tonne to limit exports President Vladimir Poutine was publicly upset about it in the middle of last week. Russia's agriculture minister was already leaning towards a quota to limit wheat exports. According to the Union of Russian Grain Exporters, a tax of 1,000 rubles per tonne, around 27 euros, should also be applied on shipments until the next harvest. World import record in November This prospect made wheat prices rebound at the end of last week: + 4% in Paris to 211 euros per tonne, + 7% in Chicago. Global wheat availability is expected to tighten, with further concerns about very dry ...

Source: Rfi