The Russian Grain Exporters Union has commenced the publication of indicative export prices for wheat, marking a significant step in establishing a pricing mechanism for its exports. Key details include:
Indicative Prices: For wheat with 12.5% protein content, the indicative export prices are set at $240 per metric ton for October, $245 for November, and $250 for December, based on data from union members representing 80% of Russia’s grain exports.
Purpose of Pricing: The initiative aims to provide fair price guidelines in light of rising production costs, high interest rates, and payment delays. Eduard Zernin, head of the union, emphasized that these prices will help combat aggressive dumping by exporters who claim ignorance of market conditions.
Minimum Price Floor: The Russian agriculture ministry has reportedly instructed exporters not to sell wheat below a minimum price of $250 per metric ton, effectively creating a price floor for international sales.
Market Impact: This regular publication of indicative prices is intended to enhance transparency in the wheat export market and prevent underpricing by some exporters, addressing concerns raised by the union in the past.
This move positions Russia, as the world’s largest wheat exporter, to better control its export pricing and maintain competitiveness in the global market.