Floating duties on wheat exports to come into effect in Russia

Published Jun 4, 2021

Tridge summary

Russia is set to replace its fixed export duty on grain with a floating one, starting at $28.1 per ton, as harvesting of winter wheat begins in the Northern Hemisphere. The move aims to control food price inflation, with the duty's amount determined weekly. However, the impact on export volumes and market prices remains to be seen. Meanwhile, weather conditions are influencing the sowing and harvesting of crops, with an analytical company reducing its wheat crop estimate from last year.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Starting tomorrow, the fixed export duty of $ 61 per ton of grain will be replaced by a floating one, which will start at $ 28.1, and the government will set it on a weekly basis. In June, the Northern Hemisphere begins harvesting winter wheat varieties, which make up the majority of the small grain supply on the market. Harvesting will begin in trade zones and leading wheat export countries such as the United States, Canada, the European Union and the Black Sea area. Russia is the main supplier of wheat in the world, so what happens in this country on the eve of the formal start of the 2021-2022 season affects the rest of the market. A notable event will be the fact that from tomorrow the fixed export tax on wheat will cease to operate in Russia, the amount of which has been 50 euros per tonne (about $ 61) since March. Instead, a system of floating duties is being introduced, the amount of which will be determined by the government on a weekly basis according to a formula based ...

Source: Agrovesti