Russian wheat export tax passes $80/mt for December 1-7

The Russian government has increased its wheat tax for the upcoming December 1-7 period, raising it by $2.25/mt to $80.80/mt, based on the underlying seven-day average index as published by the Moscow Exchange (MOEX).

The index, which is used as a reference price to determine the tax, increased by $3.60/mt to $315.50/mt, but it continues to lag behind some of the FOB export offer levels currently heard in the market.

Export offer levels were heard at $340/mt FOB NTT for spot loading, meaning that the index and the tax will likely continue to increase further in the weeks ahead.

The barley tax was also pushed up by $3/mt after falling last week and was set at $68.30/mt.

The seven days index moved $4.30/mt higher to $282.60/mt, which is also well below the offer ideas that are now above $300/mt.

Corn export taxes were also revised up by 70 cents to $54.30/mt after a significant drop was reported last week.

That comes as the average index increased by $1.10/mt to $262.70/mt.

The duty is calculated from a formula, whereby exporters will have to pay 70% of the difference between a floor price and a floating index price calculated by a panel of industry experts and published by MOEX.

The tax is updated on the final working day of the week and comes into force on the third working day after publication.

In addition to that, an export grain quota will be introduced later for the second half of the year, including a separate quota for wheat.

Along with that, there is the possibility that the government can decide to change the formula of the tax to push it further up in order to stabilize the domestic wheat market.