MOSCOW: Russian wheat export prices rose for the ninth consecutive week last week as the country’s export tax continued to grow, analysts said on Monday.
Russian wheat with 12.5% protein loading from Black Sea ports for supply in early October was $300 a tonne, free on board (FOB), at the end of last week, up $0.50 from the previous week, the IKAR agriculture consultancy said in a note. Sovecon, another consultancy, pegged wheat as having risen $2 to $303 a tonne while barley was steady at $260 a tonne.
“Russian wheat continues to lose its competitive edge, but the unpredictable export tax does not allow exporters to lower prices,” Sovecon said.
The wheat export tax, which Moscow has set on a weekly basis since June, will rise to $52.50 a tonne for Sept. 15-21, up from the current $46.50. The price index on which the tax is based remains lower than the actual FOB price.
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