One of the world?s largest wheat exporters is planning to raise and extend a wheat export tax.
In December, Russia announced a wheat export tax of 25 euros per ton on all of the country?s wheat sales from February 15th through June 30th. Allendale commodities broker Greg McBride says Russia?s economy minister recently announced they plan to raise the wheat export tax to 50 euros per ton beginning March 1st, with a continuation into the marketing season that starts on July 1st.
?At this time, this is not necessarily a big deal for wheat exports for the US because Russia is not necessarily selling a lot this time of the year,? McBride said. ?Now if that does continue into the new crop year in July, August and beyond, that?s a big deal for us because that could drive some more business our way. At this point in the year, we do know that China is starting to sell out of some of those state reserves, so it?s possible that it could turn into some sales for us in the short term.?
The higher export tax is the latest push by the Russian government to stabilize rising domestic food prices triggered by the COVID-19 pandemic.
?This is also one of those things where it could be that they are trying to get a little more out of their wheat,? McBride noted. ?They do have some concerns, or at least did have some concerns, going into dormancy about the viability of their wheat crop this year. That could be what prompted this. They want to make sure they keep as much in-house as possible in case they do have a short crop.?
Russia?s largest wheat importers are Egypt, Bangladesh, and Turkey.
