Russia Sets Fertilizer Export Quota
The Russian agriculture ministry released plans to impose quotas on the exports of nitrogen and complex fertilizers.
They are expected to come into effect on December 1 and remain in place for the next six months.
While not finalized yet, the government is expected to set the quotas at 5.9 million tonnes for nitrogen fertilizers and 5.35 million for complex fertilizers.
The quotas have until November 25 to be distributed among exporting entities.
The limit of nitrogen fertilizers comes along with limits from China.
Rising natural gas prices are largely to blame for the soaring prices of nitrogen fertilizer, which is priced at decade highs.
FBN’s Take On What It Means: Russia, the world’s largest fertilizer exporter, is enacting the quotas amid a global energy crunch to ensure enough inputs for domestic producers. However, it’s unclear the impact of the quotas as the figures are largely in line with normal export rates. Last year, the country exported 13.7 million tonnes of nitrogen fertilizers and 10.9 million complex fertilizers.
Australia Harvest Update
Prices in southeast Australia have started to come under slight pressure as harvest advances, but strong demand is keeping life in prices.
There is rain in the forecast for southeastern Australia, which could harm wheat quality, but that does have feed grain users hopeful.
Prices in the Downs region were steady to higher for barley and wheat with wheat quoted at $340 per tonne spot and $340 for January.
For barley, Downs bids were at $290, up $10 for nearby and at $285 for January, which was up $15 versus a week ago.
Further south in Melbourne, barley spot and January bids slipped on the week with spot bids at $275.
Wheat bids in Melbourne lost a lot of value with spot bids at $323, down $49 and January bids at $330 per tonne or down $29.
Queensland is about half harvested and is rapidly advancing in New South Wales and Victoria. South Australia is in its early days of harvest.
FBN’s Take On What It Means: Despite harvest progress, spot bids have yet to dip much in key areas. Some quality concerns are present , especially if the rain in the forecast is realized, but overall the wheat and barley crops seem to be in good shape. Demand remains robust for wheat and barley. Australia is set to have an excellent export year, but we do not anticipate the large crops there to significantly weigh on prices.
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