News

Grain purchases to the Russian Federation intervention fund fell to anti-record levels

Grains, Cereal & Legumes
Market & Price Trends
Published Apr 18, 2024

Tridge summary

On Tuesday, Russia's state intervention fund recorded a historic low in grain purchases, acquiring only 2,025 tons, a significant drop from previous acquisitions. This purchase, exclusively of third-class soft wheat from the Altai Territory, amounted to 31 million 630 thousand rubles. This event is part of a new series of procurement interventions that began on December 11 of the previous year, with the goal of buying two million tons of grain. This initiative aims to mitigate the effects of oversupply resulting from record harvests in 2022 and 2021, which have adversely affected prices. Such interventions, both purchasing and commodity, have been a strategy since 2001 to stabilize domestic prices and avoid market distortions.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

This Tuesday, grain purchases to the state intervention fund dropped to a new minimum volume of 2,025 tons. This is reported in the materials of the permanent participant in such trading, the National Commodity Exchange (NTB, part of the Moscow Exchange group). This is 2,970 tons less than what was purchased on Monday and 2,835 less than the previous anti-record, which was observed on April 2. This is also the lowest figure since the beginning of not only the current, but also the previous series of interventions. But the surprises didn't end there. Only one batch was delivered to the fund - soft wheat of the third class (hereinafter also referred to as “troika”). Its cost was 31 million 630 thousand rubles (hereinafter – excluding VAT). Only one contract was concluded for the purchase of the Troika. The weighted average prices amounted to 14,200 rubles per ton. Even from the regions, only one supplied grain - Altai Territory. Let us recall that a new series of procurement ...
Source: Rosng
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