MOSCOW, RUSSIA — After a recent meeting among agriculture ministry officials and leading exporters, Russia’s Grain Exporters Union began publishing indicative export prices for Russian wheat on Oct. 16, Reuters reported.
The regular publication of the indicative prices marks the first attempt by the world’s largest wheat exporter to establish its own pricing mechanism for exports. The union has accused some exporters of selling too much wheat at prices it deemed too low.
The figures are based on a poll of the union’s members, which represent 80% of Russia’s total grain exports. The union said the indicative export price for wheat with 12.5% protein content on a free-on-board (FOB) basis from the Black Sea port of Novorossiysk was $240 per tonne for October, $245 for November and $250 for December.
“The members of the union agreed to calculate and provide the market with price guidelines based on our understanding of fair export quotations, taking into account rising production costs, high interest rates and payment delays,” Eduard Zernin, head of the union, told Reuters.
He said that it will be up to individual exporters to decide whether to follow the guidance provided by the published prices.
Weather troubles are expected to dampen wheat production for Russia in the 2024-25 marketing year, with estimates ranging from 81.8 tonnes to 86 million tonnes, down from the previous year’s 91 million tonnes.
