Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

In this list

Russian ministry proposes Jan-Jun grain export cap of 20 mil mt

Commodities | Energy | Electric Power | Renewables | Natural Gas

Hydrogen: Beyond the Hype

Agriculture | Shipping | Dry Freight

Platts Dry Freight Wire

Electric Power | Renewables | LNG | Infrastructure Utilities

Caribbean Energy Conference, 21st

Electric Power | Renewables | Natural Gas

Sempra open to asset swap as part of stake sale in new energy infrastructure unit


Insight from Moscow: Russia's strong economic position among OPEC+ members underpins its negotiating power

Russian ministry proposes Jan-Jun grain export cap of 20 mil mt


Draft proposal likely to be discussed Jan 27

Analysts say curb unlikely to affect exports

New Delhi — The Russian ministry of agriculture Tuesday brought out a draft order to impose a temporary restriction on grain exports of 20 million mt from January to June to safeguard the domestic market. Analysts do not think the move, if implemented, will affect exports.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Russia is the world's largest wheat exporter and the commodity is a major part of its grain exports.

The draft will be taken up for a discussion on January 27, a Moscow-based industry source said.

The quota, if implemented, would apply to wheat, rye, barley, oats and corn. The draft proposal excludes restrictions on exports to members of the Eurasian Economic Union.US wheat futures rose on the news. The most-active Soft Red Winter wheat futures trading on the Chicago Board of Trade jumped to a 14-month high, and were seen at $5.70/bu on Tuesday.

The agriculture ministry expects total grain exports of 45 million mt in the current marketing year (July-June) of which 25 million mt had already been sold by the end of December, according to the ministry statement.

Therefore the limit of 20 million mt will not affect Russian grain exports, according to market analyst at Maxigrain, Elena Neroba.

Agricultural commodities analyst at Moscow-based OnFrontiers Yuri Voichishin, added that "a 20-million-mt limit on grain exports until June is quite high and will not affect Russian exports."

Russian wheat exports between the start of the marketing year and January 1 have reached 21.7 million mt, according to latest data from the ministry. S&P Global Platts Analytics forecasts Russian wheat exports will be 35.6 million mt in 2019-20, 400,000 mt lower than the Russian ministry's 36-million-mt forecast.

This would leave the remaining amount of estimated wheat exports in the current marketing year at around 14 million mt, which is well within the proposed quota.

"It is a long-awaited attempt by the government to create a type of automatic mechanism of export limitation when it threatens national food security," director general of the Moscow-based Institute for Agricultural Market Studies, Dimitri Rylko, said.

(Update: Adds pricing reaction)