Russia unofficially set a guideline for wheat exporters to follow a minimum selling price benchmark

Russia's agriculture ministry recently urged wheat exporters adopt an unofficial price floor of $250 per metric ton on a free-on-board basis. This move is aimed at controlling export volumes, which had surged, contributing to domestic inflation currently at around 9%. The Grain Exporters Union indicated that the ministry also urged exporters to prioritize direct deals with buyers and avoid working with foreign firms that secured tenders at prices below the new floor. The ministry stressed that Russian grain should be supplied exclusively through domestic exporters, particularly in response to the recent trend of increased exports at lower prices, which it viewed as harmful.

Additionally, Russia raised its wheat export duty by 41% to 1,872 roubles per ton on October 16, a step believed to further curb exports. The Grain Exporters Union had previously criticized some exporters for shipping large quantities at low prices and had requested the ministry to review the export quota distribution for the second half of the season. While quotas for the current season have yet to be allocated, discussions around this issue took place, although no specific details were provided.

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Russia slightly revised its harvest estimate downward from 132 million tons to 130 million tons due to adverse weather in key grain-growing areas. Observers noted that these measures reflect the government’s intent to reduce wheat exports in an effort to stabilize domestic bread prices.