Russia raises export taxes on wheat, barley, and corn

The Russian government raised the country’s wheat export tax for the period 1-7 December. The increase was US$ 2.25 per ton, to US$ 80.80, based on the average seven-day price index published by the Moscow Exchange (MOEX). The information is from AgriCensus consultancy. The index rose $3.60 to $315.50 a ton, but remains below some FOB export offers currently seen in the market.

The barley tax has also risen $3 a ton, after falling last week, to $68.30. The price index rose US$ 4.30 to US$ 282.60 a ton, which is also well below market offers, which are currently above US$ 300 a ton.

The tax on corn exports increased by US$ 0.70 per ton, to US$ 54.30, after a significant retraction last week. The average price index for the cereal increased by $1.10 to $262.70 a ton.

The tax is calculated from a formula whereby exporters have to pay 70% of the difference between a floor price and a floating price index determined by a panel of industry experts and published by MOEX.

The tax is updated on the last business day of each week and takes effect on the third business day after publication.
In addition, a grain export quota will be introduced later in the second half of the year, including a separate quota for wheat. There is a possibility that the government may decide to change the tax formula to stabilize the domestic wheat market.

Source: Valor Econômico

To read the full original article, access the link: https://valor.globo.com/agronegocios/noticia/2021/11/29/russia-eleva-impostos-de-exportacao-de-trigo-cevada-e-milho. ghtml

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