Volga Baikal AGRO NEWS Update on the Wheat Duties Situation !!!

The export duty on wheat will decrease from $ 52.5 to $ 50.9 per ton ( from September 22 up to 28, 2021)

Volga Baikal AGRO NEWS Update on the Wheat Duties Situation !!!

The export duty on wheat will decrease from $ 52.5 to $ 50.9 per ton ( from September 22 up to 28, 2021).

Head of the Analytical Department of the Russian Grain Union Elena Tyurina told to Agroinvestor that now the wheat market has stopped. “Our FOB price has hardly changed over the week and is $ 300 per ton. The market is waiting for new information, – noted E.Tyurina. “For wheat, we have an increase in all indicators, but, probably, the main factor that will affect the formation of the world market is the growth in consumption”. According to the latest report of the US Department of Agriculture, this figure in the world in the current season should grow by 8.8 million tons compared to the last season, E.Tyurina recalled. At the same time, production will increase by only 4.5 million tons.

“We see that the increase in consumption exceeds the increase in production. Accordingly, the growth in the world trade is expectedA decrease in carry-overs by 9.3 million tons is also expected. This is a factor that will push the markets up, E.Tyurina believes. According to her, with stable prices for Russian wheat FOB, the growth of prices on the world market was noted. Our country has restored its competitiveness against France, added E.Tyurina. The main competitor of Russia – Ukraine, prices for wheat fell by 2%.

The indicator of daily grain shipment, according to E.Tyurina, is at a very good level – 190 thousand tons.This is more than in August 2021 (183 thousand tons per day), in September last year (158 thousand tons per day), and in September 2019 (122 thousand tons). The demand is high. We can say that wheat exports in September may amount to about 5.5-5.7 million tons. Barley shipments are also very good – 19.2 thousand tons per day, in September last year there were 19.5 thousand tons. export growth can be expected to 550 thousand tons. In September last year, this figure was 434 thousand tons, – compared E.Tyurina. – The export of corn is at about the level of the last year. However, our export potential for this agriculture is not yet understood, since the harvest has just begun. Trade is proceeding cautiously, shipments are 75-78 thousand tons.”

The duty on barley will decrease from $ 33.1 to $ 31 per ton, on corn – from $ 49 to $ 47.8 per ton. The fees are calculated based on indicative prices. For wheat, the price was $ 272.8 / ton ($ 275 / ton a week earlier), for barley – $ 229.4 / ton ($ 232.3 / ton), for corn – $ 253.4 / ton ($ 255 / ton). Eduard Zernin, Chairman of the Board of the Union of Grain Exporters, specified to Agroinvestor that the cost of the Russian wheat in deep-water ports is 16.2 thousand rubles per ton, in shallow water – 15.7 thousand rubles per ton.

Head of the analytical center Rusagrotrans Igor Pavensky previously told to Agroinvestor that wheat export in September may amount to 4.4-4.5 million tons against 5.1 million tons in August. He admitted that there would be a drawdown in exports in October, but as domestic and export prices balance against the backdrop of a growing duty, it may increase again in the coming months.

According to Rosstat, agricultural organizations in August shipped 8.2 million tons of cereals and legumes, which is 15.4% less than in the same month last year. In particular, sales of wheat decreased by 14.6% to 6.4 million tons, corn – increased by 66.7% to 146.5 thousand tons. For eight months, 32.4 million tons of grain were sold (by 4.3 % less than a year earlier), including 21.3 million tons of wheat (3.9% less), 3.4 million tons of corn (1.4% less).

Source: Agroinvestor.ru



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