Russian domestic wheat prices down sharply as export tax looms

MOSCOW: Russian domestic prices for wheat fell sharply at the end of last week as supply rose ahead of a wheat export tax which Russian officials are planning to impose in addition to a grain export quota, analysts said on Monday.

Russia plans to impose a set of measures to slow the rise of domestic food prices, including the wheat export tax of 25 euros ($30.4) for Feb 15-June 30, its government said at a meeting on Monday.

"Grain supply is up as farmers are rushing to sell at current still almost record-high prices after export tax rumours," Sovecon agriculture consultancy said in a note.

Domestic prices for third-class wheat fell by 225 roubles to 15,725 roubles ($215.4) per tonne last week, it added.

Russian wheat with 12.5% protein loading from Black Sea ports for supply in December was at $252 a tonne on a free-on-board (FOB) basis at the end of last week, unchanged from the week before, the IKAR, another consultancy, said in a note.

Sovecon said wheat export prices rose by $2 to $257 a tonne, while barley was steady at $216 a tonne.

Domestic sugar prices were slightly down in rouble terms, but rose by $4 in dollar terms due to stronger rouble, IKAR said.