USDA January World Markets and Trade: Grain

Despite grain export restrictions, Russia will reclaim the top wheat export position, according to the USDA Grain: World Markets and Trade report released Tuesday, Jan. 12.

In December 2020, the Russian government announced trade-restrictive measures for certain grains and oilseed products in response to high domestic prices.

This comes despite record wheat production and near-record production for total grains. Russia was the largest wheat exporter in 2017/18 and 2018/19 and is forecast to rebound to again be the leading exporter for 2020/21, despite these new trade-distorting measures which have pressured global prices higher.

The new measures include the introduction of an export quota of 17.5 million tons on specified grains, including wheat, rye, barley, and corn, to be in effect from February 15 to June 30, 2021.

Within this quota, wheat will face an export tax of 25 euros per ton, and above the quota will face a tax of 50 percent, but not less than 100 euros per ton.

Barley, corn, and rye are not subject to a tax within the quota, but given low anticipated trade volumes during this period, coarse grains are unlikely to be substantially restricted by the measure.

To read the full report, click here.

Grainnet

Tags: USDA, grain, world markets