Russia lowers export tax on wheat to $114.3/mt; first cut since March

Russia's agriculture ministry on May 6 set the variable export tax on wheat at $114.30/mt for the May 13-17 period, down $5.80 from the May 6-12 previous period, the first reduction in the export tax since March 16.

The export tax had been rising following higher export prices after the start of Russia's invasion of Ukraine.

The variable export tax was introduced in Russia on June 2, 2021, to limit the increase in grains prices. The export tax is calculated as 70% of the difference between the average of export prices on an FOB basis during the 60 days preceding the day of calculation and $200. It is published every Friday and enters into force on Wednesday of the following week.

S&P Global Platts assessed FOB Black Sea wheat (Russian Deep Sea, 12.5% protein) at $392/mt on May 5, down $2 week on week.