market, which has been overheated recently, Reshetnikov ex- plained. The decision has already sparked turbulence in the Russian grain market. It will certainly fill the federal budget, but is unlikely to help the domestic feed industry. In the last week of 2020, Russian wheat export prices jumped by 6.5% to US$ 260 per tonne. Domestic prices went down, but this might only be a temporary respite. “The domestic market is low now because farmers are withholding grain, as they are not willing to sell it at relatively low prices,” Igor Pavensky, di- rector of the analytical department of the Russian transport company Rusagrotrans said. There is a good chance that the export price of Russian grain could climb further to US$ 270, against the background of a tough situation on the global corn market and uncertainty over the new harvest in South America, Andrey Sizov, director of the Russian analytical agency SovEcon told the Russian magazine Agroinvestor. Russian government officials called on farmers not to with- hold grain, threatening that if market participants do not act responsively, the quotas could be introduced for good. “It’s


important to form an understanding of the market that from July 1 there will be no zeroing of export duties, so there is no point in holding onto grain and waiting in the hope that the domestic market will change one day,” Reshetnikov said, add- ing that by all means the government plans primarily to pro- tect domestic customers. Export prices are also set to rise due to the introduction of a new export tax. “The forecast for Rus- sian wheat exports in the 2020/21 season had been reduced from 40.8 million tonnes to 38.3 million tonnes after the pro- posal to introduce the new tax was released. However, a sub- sequent in-depth analysis showed that this figure is likely to be even lower”, Sizov said. Still, increased supply to the domestic market would not guarantee lower prices. Russian analysts warned that the ex- port quota introduced at the beginning of 2020 to constrain domestic grain prices has failed to meet its target. With some delays, domestic prices are following the trend in export pric- es, which, on the contrary, are spurred by all the restrictive measures. According to Elena Tyurina, director of the Russian Grain


▶ ALL ABOUT FEED | Volume 29, No. 1, 2021


Russia restricts grain exports.


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