Russia’s Economy Ministry is planning to impose an export tariff on soybean shipments from February 1st through June 30th of next year.
Reports say the export duty will be 30 percent, but not less than 165 euros per ton. Allendale commodities broker Greg McBride says this latest Russian move comes after President Vladimir Putin recently criticized the impact of excessive inflation. The country is now trying to stabilize food prices.
“What we are hearing is that in the same timeframe Russia is going to do an export duty on wheat, they are going to do a 30 percent tax on soybean exports as well,” McBride said. “Normally, we aren’t going to necessarily pay attention to it. This is more just a headline to get excited about. I don’t think the beans at this point need any extra fuel for the fire.”
McBride notes the Russian soybean export tariff will have no impact on the US. Over the last five years, Russia has averaged 1.1 percent of global bean production and just 0.5 percent of global soybean trade.
“Russia is not a major soybean exporter,” McBride said. “Just in terms of what the USDA estimates them to do in this marketing year is 800,000 metric tons, compared to what we sold just last week at over 900,000 tons. To put that in perspective, they are not a major player when it comes to the soybean exports for the world.”
Last week, Russia imposed a wheat export tax of 25 euros per ton during that same February 1st through June 30th timeframe. They additionally imposed a quota for overseas shipments of wheat, rye, barley, and corn – limiting exports to 17.5 million metric tons.