Jan 12, 2021

Russia Considers Raising Wheat Export Tax

Markets await USDA’s multiple reports

Russia Considers Raising Upcoming Wheat Export Tax

  • The current tax is set at 25 euros per tonne of wheat exported from February 15-June 30.
  • But, as prices have risen, the government now is considering further increasing the export tax in hopes of the new level having an impact on its domestic market.
  • One rumor is that the tax could come in at 50 euros per tonne.
  • No official announcement has been made but expectations are that the tax hike would be approved.
  • Russia’s wheat prices have risen despite the announced plan of the 25-euro-tax in December, offsetting the government’s hopes of stabilizing domestic wheat prices.

FBN’s Take On What It Means: The move would not be surprising but may not do much good. The problem is that foreign markets are willing to pay more than Russia’s domestic population at current prices, keeping Russian wheat in the export market. A higher tax likely would result in helping push global prices even higher.


Argentina Lifts Corn Export Ban, But Limits Sales

  • After farmers rallied at the new restriction of no corn exports until March 1, the government modified its terms.
  • Now, Argentina has placed a 30,000 tonne limit on corn export sales per day to foreign countries.
  • The move is temporary and is less restrictive than the previous halt.
  • The ministry said that this limit will still keep domestic supplies at needed levels and will cushion local prices.
  • The more aggressive approach could have resulted in farmers being less willing to invest in corn production, which could cause more problems down the road.
  • Argentina typically exports light volumes of corn ahead of its new-crop harvest.

FBN’s Take On What It Means: The government is dealing with serious economic issues including rising food costs, but is trying to also meet farmers’ demands. The bottom line is that there is a shortage of feed grains across the world, even for major exporters, with countries buying normal volumes and China aggressively buying. More changes could come from South America in the coming weeks, especially if weather continues to be less than ideal for Argentina.

FBN Market Advisory services are offered by FBN BR LLC, dba FBN Brokerage, FBN BR and FBN Market Advisory (NFA ID: 0508695)
The risk of trading futures and options can be substantial and may not be suitable for all investors. Past performance is not necessarily indicative of future results.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to, persons residing in Australia and Canada.

Kevin McNew

Recently Added to Buyer's Guide

VersaMix Triple Shaft Mixers

  • For mixing applications requiring efficient powder dispersion and critical homogenization of medium to high viscosity slurries, pastes, gels, creams and suspensions
  • High-shear mixer with solids/liquid injection manifold (SLIM) technology rotor/stator

GUC-F Controller

  • Multichannel feeding and dosing controller
  • Control solution for feeding and weighing applications in powder handling applications
  • Flexible and modular design with analog and digital load cells


  • Offers accurate and reliable continuous mass flow measurement of bulk solids with an accuracy of +/- 0.5% full scale
  • Measures mass of flowable solids with densities of 10 to 100 pounds/cubic foot and flow rates from 700 to 7,000 cubic feet/hour


  • 10.1” touchscreen
  • Easy to install in new or existing systems

Sanderson Farms Feed Mill Expansion - Kinston, NC

  • Construction of a whole grain silo expansion (76’ diameter x 145’ tall) to hold 500,000 bushels
  • Expansion also includes a 12’x17’x22’ deep boot pit extension at the end of the existing receiving tunnel

Horizon Feed Ordering Automation Platform

  • Automates many processes within supply chain for efficient, sustainable and profitable production
  • Manage all bins and orders on a single software platform


Marketwatch: Jan, 18

US Corn Price Idx: ZCPAUS.CM

open: 5.7667
high: 5.8486
low: 5.7266
close: 5.8288

US Soybean Price Idx: ZSPAUS.CM

open: 13.366
high: 13.376
low: 13.2328
close: 13.2696

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 7.3061
high: 7.3384
low: 7.2334
close: 7.2454

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.0114
high: 7.0566
low: 6.9566
close: 7.0014