Volga Baikal AGRO NEWS Update on the Russian Wheat Exports !!!

Less than 171 000 tons of grain left in the intervention fund

Volga Baikal AGRO NEWS Update on the Russian Wheat Exports !!!

Less than 171 000 tons of grain left in the intervention fund.

Trading of the grain from the intervention fund, which took place on January 20, 21 and 22 at the site of the National Mercantile Exchange (NAMEX), ended unsuccessfully – not a single ton of grain was sold. Now they will try to sell it at the February auctions, which will take place on February 01 – 05, the press service of NAMEX reports.

The fact that Russia will resume the sale of grain from the intervention fund became known in mid-January. Livestock breeders, flour mills and feed mills, as well as grain exporters were allowed to purchase. According to the Ministry of Agriculture, at the beginning of December, 170.8 thousand tons of grain remained in the intervention fund, about 82 thousand tons of wheat of the 3rd and 4th classes, as well as barley of the 2013-2016 harvest, were put up for auction in January. The starting price for wheat varied in the range of 11.4-15.7 thousand rubles / ton, depending on the class, harvest year and delivery basis, for barley – 9.65-11.4 thousand rubles / ton. 

According to the Ministry of Agriculture, low demand for grain from the intervention fund is associated with the introduction in February of the tariff quota for grain exports, which influenced the formation of sufficient supply in the domestic market, RIA Novosti reports. “At the same time, the Ministry of Agriculture will continue to sell grain from the Federal Intervention Fund, since for a number of regions the price of grain from the State Fund is a market indicator,” – the ministry explains.

On the first day of the February auction, it is planned to put up 15.4 thousand tons of wheat and 135 tons of barley for sale. The starting price of wheat is from 10.5 thousand rubles / ton to 13.85 thousand rubles / ton, barley – 10.7 thousand rubles / ton. “The grain is planned to be sold to the domestic market, this measure is aimed at stabilizing the price situation and providing flour producers with the required volume of raw materials,” – the Ministry of Agriculture clarifies.

Government interventions in the purchase and sale of grain have been carried out in Russia since 2001 to stabilize domestic grain prices. With a high yield, procurement interventions allow to remove the surplus from the market and to support prices, which allows farmers to avoid losses. Commodities, on the other hand, are designed to lower prices by injecting grain from the state fund into the market. In May last year, the Union of Grain Exporters proposed to consider the possibility of “resetting” the existing intervention fund and to create on its basis a food grain fund, first of all, to provide the milling industry with raw materials at affordable prices.

Source: Agroinvestor.ru


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