After many records have been broken in grain prices, the grain market is letting prices relax a bit early this week.
This puts an end to the major price fluctuations that have gripped trade recently. The security of the grains supply in particular has been at stake in recent times. There is a moment of calm on that front as Egypt – one of the largest wheat importers in the world – will receive a hefty amount of wheat in the coming days. What is special, is that a large part of the wheat comes from Russia and Ukraine.
Russia will also continue to impose export duties on wheat, malting barley and maize. Putin wants the export of certain products, including grain, to certain customers to be restricted or stopped. In order to materialize this decision by Putin, the government must draw up lists of countries and products. As long as this has not happened, the export will continue.
For the week of March 16 to 22, the wheat export duty is set at $86.30 per tonne. That is a fraction lower than last week’s tax. The price is calculated on the basis of an export indication price of $323.30 per tonne. That equates to converted € 294 per tonne. For malting barley and maize, higher export duties apply compared to the previous weeks.
Despite the war in Ukraine, Russia exported some 380,000 tons of wheat in the week of March 4-10. Of this, 180,000 tons is destined for Turkey and 100,000 tons for Egypt. The vast majority apparently find their way through the Black Sea. The seasonal total of Russian wheat exports thus rises to 26.8 million tons.
The US Department of Agriculture USDA has revised the export quantities of wheat from Ukraine and Russia considerably downwards in its report that appeared last week. According to this estimate, Russia will export 32 million tons this season, which is 3 million tons less than previously expected. Exports from Ukraine have been reduced by 4 million tons to 20 million tons.
On the other hand, Australia’s export forecast has been raised by 2 million tons to 27.5 million tons. As it stands, the European Union is by far the largest exporter this season with 37.5 million tons, the USDA said. About half of that has now been completed. In the remaining months, a large part still has to be shipped.