Increase in export duty of Russian wheat limited price growth – APK-Inform




According to APK-Inform, despite sizable weakening of the Russian ruble against the US dollar, the purchasing prices of food wheat increased only slightly over the last two weeks in the seaports of Russia.

The prices were pressured by increase in the export duty on wheat since December 28. Easing of demand from traders added pressure. Most of them had accumulated stocks sufficient to perform previously signed contracts. Many market participants expect completion of wheat purchases to an intervention fund after the New Year holidays, as the previously announced purchasing plan was over-fulfilled that may weight on the domestic market.

The bid prices of 3-grade wheat with protein content not higher than 14.5% increased by 50-200 RUR/t over the last two weeks and as of December 30 totaled 15400-16100 RUR/t CPT-port (VA T included) in the Black Sea ports. In the ports of the Azov Sea, the bid prices increased by average 50 RUR/t and totaled 13600-14900 RUR/t CPT-port (VA T included).

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