Volga Baikal AGRO NEWS Update on the Export Duty on Wheat in Russia !!!
From May 18, the Russian Federation will again reduce the export duty on wheat to $111.9 per ton.
Rates on barley and corn will strengthen.
From May 18, the export duty on wheat from Russia will decrease to $111.9 per ton from the current $114.3, according to the materials of the Ministry of Agriculture.
Earlier, on May 13, Russia lowered the rate for the first time since mid-March.
At the same time, the duty on barley from May 18 will increase from 74.1 to 76.5 dollars per ton, on corn – from 77 to 77.3 dollars per ton.
Rates are calculated based on indicative prices. The price of wheat for the week decreased from 363.4 to 359.9 dollars per ton, while the price of barley increased from 290.9 to 294.3 dollars per ton, for corn – from 295 to 295.5 dollars per ton.
Floating export duties on the main grain crops – wheat, barley and corn, began to operate in Russia from June 2, 2021. They are part of the so-called grain damper mechanism: the funds received from the collection of duties must be returned to the Russian regions in the form of subsidies to farmers. The amount of duties is calculated weekly on the basis of indicative prices (based on the value of export contracts that are registered on the exchange). The cut-off bar for wheat is $200 per ton, for corn and barley – $185 per ton. The duty rate is 70% of the excess of this indicator.
According to the Analytical Center of Rusagrotrans, wheat exports may amount to 0.9-1 million tons in May compared to 0.4 million tons a year earlier. At the end of the season, wheat exports are expected to reach 31.7 million tons.