The Sizov Report blog

Russia is introducing a flat wheat export tax of 25 EUR/mt (EURUSD = 1.21). What does that mean for global wheat market?

Russian export market remains relatively flat. 12.5% wheat prices in deep-sea ports declined by $1 to $253/mt. The market continues to watch the weather in the Black Sea and follow closely a discussion about potential export restrictions.

Russian export prices were slightly higher this week, supported by the domestic market. 12.5% wheat prices in deep-sea ports rose $1 to $254/mt, in shallow ports were up $2 to $235/mt.

Russian 12.5% wheat prices in deep-sea port were marginally down week on week, by $2 to $253/mt, as per SovEcon

Wheat climbes higher supported by corn which is driven by Chinese imports and poor Black Sea crop

The start of the 2020 wheat harvest campaign around the Black Sea was a disaster. Both Russia and Ukraine were reporting yields around 30% lower than a year ago after a prolonged dryness period in spring which damaged crops in the region substantially.

Last week, Russian wheat prices started to ease but dryness in the Black Sea should remain on the markets’ radar

Last week, 12.5% Russia’s wheat prices in deep-sea ports rose sharply, by $8, to $222/mt. The market was supported by strong demand from importers. Russian wheat starts to lose its competitive edge after the recent rally.

Last week, Russia’s 12.5% wheat prices in deep-sea ports fell $1 to $199/mt. The market remains under harvest pressure in Russia, weaker ruble also helps.

USDA has just released the new WASDE report, here’s our quick commentary