MOSCOW: Russian wheat export prices fell last week after sharp growth earlier in the month as a result of an official proposal for higher wheat export tax from March 1, analysts said on Monday.

Moscow is expected to approve the higher wheat export tax soon as it seeks to curb domestic food inflation triggered by the COVID-19 crisis.

Russian wheat with 12.5% protein loading from Black Sea ports for supply before mid-February was at $296 a tonne free on board (FOB) at the end of last week, down $2 from the previous week, the IKAR agriculture consultancy said in a note.

“The numerous attempts to elevate it over $300 failed due to buyers’ resistance,” IKAR said.

Refinitiv said that wheat prices fell by $5 to $295 a tonne. Sovecon, another Moscow consultancy, said barley prices rose by $7 to $238 a tonne.

Russian regions producing winter wheat had another week of good precipitation last week, Sovecon said, adding that the lack of moisture in the previous few months had been almost fully offset.

Temperatures in some of the regions are expected to be abnormally high within the next two weeks, raising risks of the plant damage in the event of a cold snap in late February or early March, Sovecon added.