Russian media reported that Russia plans to raise export tariffs on soybeans and other grains。Earlier, Russian President Vladimir Putin called for a reduction in domestic food prices。
Bloomberg News reported on the 20th that the Russian government is trying to cope with rising food prices。Putin was quoted as saying earlier this month that he was surprised by the sharp increases in prices such as bread and sunflower oil。
Russia's Interfax news agency reported on the 19th that a committee under the Russian customs agency agreed to impose a 30% tariff on soybean exports。The report quoted sources as saying that the new tax rate is scheduled to take effect on February 1 next year and last until June 30。The committee also approved a 5% tariff on scrap exports。
In addition to measures to limit exports of soybeans and scrap steel, the Russian government announced last week that it would impose an export tariff of 25 euros ($25) per ton on wheat from mid-February to the end of June, while speeding up the implementation of previously announced export quotas on grains。According to data provided by agricultural consultancy SovEcon, the new tax rate will reduce Russian wheat exports by 2 million to 3 million tons in 2020-2021, to 37.8 million to 38.8 million tons。
[Overall supply reduction]
In the Chicago Board of Trade, soybean futures prices rose to a six-year high on the 21st。Corn and wheat futures also rose。
In addition to the Russian policy, Reuters reported that the recent weather in South America was not conducive to crop growth。
A grain trader based in Melbourne, Australia, who asked not to be named, said: "The supply landscape has changed。South America's problems have put markets on edge。”
Argentina's Buenos Aires Grain Futures Exchange said last week that dry weather affected Argentina's soybean planting。Meanwhile, an ongoing strike by oilseed workers and grain inspectors in Argentina last week halted soybean meal production and agricultural exports。There is no sign that the two sides will reach an agreement on pay any time soon。