Russia increases wheat export tax $2.50 to $80.80/mt for Dec 1-7

Russian ministry of agriculture set the variable export tax amount at $80.80/mt on Nov. 26 for the Dec. 1-7 period, $2.50 higher on the week.

The export tax is expected to increase even further over the next weeks, according to market sources.

The variable export tax was introduced in Russian on June 2 to limit grains price rises on the domestic market. The export tax is calculated as 70% of the difference between the average of export prices on FOB basis during the 60 days preceding the day of calculation and $200. It is published each Friday and enters into force on Wednesday of the following week.

If wheat prices keep rising, the Russian government may take further action to limit food inflation in the domestic market, sources said.

The export tax has been rising over the last few weeks, pushing the wheat export market higher.

S&P Global Platts assessed FOB Black Sea wheat (Russian Deep Sea, 12.5% protein) at $344.75/mt on Nov. 25, $2.75 higher from Nov. 19 when the export tax was announced for the previous week.