Russia drops unofficial minimum price for wheat exports

The Russian government has cancelled the recommended minimum price for wheat for exporters. There will be no lower limit until the end of the season, which begins on July 1. This was reported by Reuters, citing sources.

Previously, the recommended threshold price for exports in May and June was $250 per ton, the agency’s sources said.

At a closed meeting in October last year, the Russian Ministry of Agriculture recommended that exporters not sell wheat at international tenders at prices below $250 per ton FOB. At the same time, the Union of Grain Exporters and Producers announced the course taken on direct deliveries of Russian grain without the involvement of foreign traders and intermediaries.

A minimum price for grain exports is not officially set in Russia. The export quota mechanism approved in 2021 is in effect. It allows maintaining an optimal balance between the domestic grain market and the supply of these products for export. Within the quota, grain exports are subject to a floating duty, depending on the price situation.

Tags: Russia, export, wheat