Restrictions halve Russian wheat exports

Developments

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restrictions halve Russian wheat exports

2015-03-30 15:58 |
source: China Grain Network |
russian wheat exports have halved from last year after the government began imposing tariffs on wheat exports.

Transport company ZAORusagrotrans forecast that Russian wheat exports in March were 65% lower than last year. After export tariffs took effect in February, wheat exports plunged 45 percent in the month, government data showed.

Rusagrotrans vice president IgorPavensky said many grain buyers are turning to European sellers, whose goods are cheaper as the euro weakens.

"Our market share was taken away a little bit." He called from Moscow. "Record supply in Europe."

Pavensky said that Russia is expected to export 450000 tons of wheat in March, compared with 1.3 million tons in the same period last year.

Exports are expected to be at least 600000 tons, said VladimirPetrichenko, president of ProZerno, a market research firm in Moscow.

The export tariff system has successfully reduced the cost of wheat in Russia.

Data compiled by Rusagrotrans show that shrinking demand from exporters has reduced the ex-factory price of wheat in southern Russia this week by nearly 20% from the highest of about 9,600 rupees/ton this year hit in mid-December.

Price declines accelerated last week as farmers began selling stocks to finance spring planting, market researchers said SovEcon.

**European Supply**

Pavensky said Russian wheat export duties were 15 percent of the total value of the shipment, plus 7.50 euros per ton. In addition, the rebound in the ruble this year has also increased the cost of buying Russian wheat.

As Russian supplies dwindle, buyers are turning their attention to countries such as Germany, France and Romania. Since July 1 last year, EU regulators have issued 24.4 million tons of soft wheat export permits.

SwithunStill, president of the Lausanne SolarisCommoditiesSA, said that Russian wheat exports have not completely dried up in the past two months because traders are currently sourcing at low prices and selling abroad profitably.

The DmitryRylko in charge of the Russian Agricultural Market Research Association (InstituteforAgriculturalMarketStudies,IKAR) said that the impact of tariffs on exports continues.