Some large exporters of Russian wheat have suspended purchases of wheat, as they are not ready to work with high export duties, informed Коммерсант.
Louis Dreyfus, KZP, Bunge and Sierentz Global Merchants have actually left the market. Moreover, there are talks that Cargill and Gemcorp have suspended purchases of wheat too. One source says, the companies do not want to take duty related risks.
Another source says, “nobody is ready to buy wheat” under the duty at 59 USD/t.
The Chairman of the Board of the Union of grain exporters, Eduard Zernin says most exporters “hold the purchases of wheat”, as producers and traders are waiting for cancelation of the export duty and do not ready to put it into the price.
“This will result in sharp correction of the prices instead of smooth reduction, when farmers will need to unload their storage facilities for new-crop grain. The market understands it and is waiting for the correction”, - he explained.
Some experts suppose the exporters will resume wheat purchases, when the new mechanism of calculation of the duty will come into force on June 2. At the same time, the Ministry of Agriculture says the exporters are waiting for the price correction ahead of the new-crop and it is the main reason for suspended purchases, while the factor of duty has already adjusted to the prices.
